Securities Lending. Collateral Type* ($000s) Organization of the Fund (note 1) x x

Transcription

1 Annual Financial Statements for the financial year ended December 31, 2015 Statements of Financial Position (in 000s, ecept per unit amounts) As at December 31, 2015 and 2014 (note 1) Assets December 31, 2015 December 31, 2014 Current assets Investments (non-derivative financial assets) (notes 2 and 3) $ 4,545,276 $ 5,836,542 Cash including foreign currency holdings, at fair value 50,029 Margin Interest receivable 19,711 21,382 Dividends receivable 9,698 10,937 Receivable for portfolio securities sold 21,286 3,974 Receivable for units issued 4,232 8,462 Other receivables 8 8 Derivative assets 5,977 1,873 Total Assets 4,606,205 5,933,224 Liabilities Current liabilities Bank overdraft 17,827 Payable for portfolio securities purchased 3 3,535 Payable for units redeemed 19,972 11,209 Management fees payable 1 Other accrued epenses 7 8 Derivative liabilities 10,031 8,997 Total Liabilities 47,840 23,750 Net Assets Attributable to Holders of Redeemable Units (note 5) $ 4,558,365 $ 5,909,474 Net Assets Attributable to Holders of Redeemable Units per Class Class A $ 4,464,876 $ 5,780,722 Class O $ 93,489 $ 128,752 Net Assets Attributable to Holders of Redeemable Units per Unit (note 5) Class A $ 1149 $ 1282 Class O $ 982 $ 1074 Securities Lending The tables that follow indicate the Fund had assets involved in securities lending transactions outstanding as at December 31, 2015 and 2014 Aggregate Value of Securities on Loan Aggregate Value of Collateral for Loan December 31, , ,471 December 31, , ,527 Collateral Type* i ii iii iv December 31, , , December 31, , ,382 * See note 2j for Collateral Type definitions Organization of the Fund (note 1) The Fund was established on August 12, 1998 (Date Established) Inception Date Class A September 22, 1998 Class O June 1, 2010 The accompanying notes are an integral part of these financial statements 1

2 Statements of Comprehensive Income (in 000s, ecept per unit amounts) For the periods ended December 31, 2015 and 2014 (note 1) December 31, 2015 December 31, 2014 Net Gain (loss) on Financial Instruments Interest for distribution purposes $ 99,532 $ 101,458 Dividend revenue 101, ,927 Other changes in fair value of investments and derivatives Net realized gain (loss) on sale of investments and derivatives 173, ,301 Net realized gain (loss) on foreign currency (notes 2f and g) (176,868) (37,364) Net change in unrealized appreciation (depreciation) of investments and derivatives (371,439) (70,754) Net Gain (loss) on Financial Instruments ±±± (173,189) 375,568 Other Income Foreign echange gain (loss) on cash Securities lending revenue , Epenses (note 6) Management fees ± 72,287 82,231 Audit fees Custodial fees Independent review committee fees 2 19 Legal fees Regulatory fees Transaction costs ±± 1,844 3,369 Unitholder reporting costs 4,089 4,769 Withholding taes (note 7) 1, Other epenses ,344 91,849 Epenses waived/absorbed by the Manager (10) (8) 80,334 91,841 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units (ecluding distributions) (251,969) 284,400 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units per Class (ecluding distributions) Class A $ (248,549) $ 267,146 Class O $ (3,420) $ 17,254 Average Number of Units Outstanding for the period per Class Class A 423, ,370 Class O 10,518 22,993 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units per Unit (ecluding distributions) Class A $ (059) $ 059 Class O $ (033) $ 075 ± Maimum Chargeable Annual Management Fee Rates (note 6) Class A 125% Class O 000% ±± Brokerage Commissions and Fees (notes 8 and 9) Brokerage commissions and other fees Total Paid 1,720 2,291 Paid to CIBC World Markets Inc Paid to CIBC World Markets Corp Soft dollars Total Paid 918 1,441 Paid to CIBC World Markets Inc and CIBC World Markets Corp Administrative and Other Fund Operating Epenses (note 9) ,707 4,190 Service Provider (note 9) The amounts paid by the Fund (including all applicable taes) to CIBC Mellon Trust Company for custodial fees, and to CIBC Mellon Global Securities Services Company (CIBC GSS) for securities lending, fund accounting and reporting, and portfolio valuation (all net of absorptions) for the periods ended December 31, 2015 and 2014 were as follows: ±±± Net Gain (Loss) on Financial Instruments (in 000s) Net gains (losses) Category December 31, 2015 December 31, 2014 Financial assets at FVTPL Held for Trading $ (174,607) $ (41,760) Designated at Inception 1, ,328 Total financial assets at FVTPL $ (173,189) $ 375,568 2 The accompanying notes are an integral part of these financial statements

3 Statements of Changes in Net Assets Attributable to Holders of Redeemable Units (in 000s) For the periods ended December 31, 2015 and 2014 (note 1) December 31, 2015 Class A Units December 31, 2014 December 31, 2015 Class O Units December 31, 2014 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units (ecluding distributions) $ (248,549) $ 267,146 $ (3,420) $ 17,254 Distributions Paid or Payable to Holders of Redeemable Units From net investment income (121,367) (294,403) (4,208) (11,949) Return of capital (181,077) (30,648) (1,542) (458) (302,444) (325,051) (5,750) (12,407) Redeemable Unit Transactions Amount received from the issuance of units 538, , ,579 Amount received from reinvestment of distributions 267, ,498 5,750 12,407 Amount paid on redemptions of units (1,570,820) (1,097,535) (32,682) (162,359) (764,853) (56,139) (26,093) (139,373) Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units (1,315,846) (114,044) (35,263) (134,526) Net Assets Attributable to Holders of Redeemable Units at Beginning of Period 5,780,722 5,894, , ,278 Net Assets Attributable to Holders of Redeemable Units at End of Period $ 4,464,876 $ 5,780,722 $ 93,489 $ 128,752 Redeemable Units Issued and Outstanding (note 5) As at December 31, 2015 and 2014 Balance - beginning of period 450, ,390 11,990 24,746 Redeemable units issued 43,192 57, Redeemable units issued on reinvestments 21,641 21, , , ,185 12,621 26,839 Redeemable units redeemed (126,958) (83,318) (3,096) (14,849) Balance - end of period 388, ,867 9,525 11,990 The accompanying notes are an integral part of these financial statements 3

4 Statements of Cash Flows (in 000s) For the periods ended December 31, 2015 and 2014 (note 1) Cash Flows from Operating Activities December 31, 2015 December 31, 2014 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (ecluding distributions) $ (251,969) $ 284,400 Adjustments for: Foreign echange loss (gain) on cash (787) (143) Net realized (gain) loss on sale of investments and derivatives (173,962) (260,301) Net change in unrealized (appreciation) depreciation of investments and derivatives 371,439 70,754 Purchase of investments (9,311,749) (14,239,772) Proceeds from the sale of investments 10,381,624 14,731,281 Margin 30 Interest receivable 1,671 (2,433) Dividends receivable 1,239 4,079 Other receivables (1) Other liabilities (2) 4 1,017, ,898 Cash Flows from Financing Activities Amount received from the issuance of units 543, ,613 Amount paid on redemptions of units (1,594,739) (1,264,774) Distributions paid to unitholders (35,244) (37,553) (1,086,147) (539,714) Increase (Decrease) in Cash during the Period (68,643) 48,184 Foreign echange loss (gain) on cash Cash (Bank Overdraft) at Beginning of Period 50,029 1,702 Cash (Bank Overdraft) at End of Period $ (17,827) $ 50,029 Interest received $ 101,203 $ 99,025 Dividends received, net of withholding taes $ 101,522 $ 125,226 4 The accompanying notes are an integral part of these financial statements

5 Schedule of Investment Portfolio As at December 31, 2015 Security Number of Shares Average Cost Fair Value % of Net Assets CANADIAN EQUITIES Consumer Discretionary Magna International Inc, Class 'A' 816,890 23,585 45,844 23,585 45,844 10% Consumer Staples Empire Co Ltd, Class 'A' 399,930 11,916 10,294 11,916 10,294 02% Energy AltaGas Ltd 1,283,843 35,904 39,671 AltaGas Ltd, Preferred, Series 'A', Variable Rate, Convertible, Callable 44,400 1, ARC Resources Ltd 1,250,341 23,205 20,881 Canadian Natural Resources Ltd 1,837,230 61,890 55,521 Cenovus Energy Inc 2,755,540 82,376 48,222 Enbridge Inc 448,495 29,115 20,631 Enbridge Inc, Preferred, Series '3', Variable Rate, Perpetual 87,266 2,182 1,487 Enbridge Inc, Preferred, Series 'D', Variable Rate, Perpetual 19, Husky Energy Inc 1,826,500 55,777 26,137 Inter Pipeline Ltd 953,409 28,854 21,175 Suncor Energy Inc 1,722,414 59,219 61,525 TransCanada Corp 1,892,850 94,611 85,538 Vermilion Energy Inc 626,028 36,025 23, , ,363 89% Financials Bank of Montreal 1,308,424 77, ,162 Bank of Nova Scotia 1,392,864 77,376 77,959 Bank of Nova Scotia, 560%, Preferred, Series '17', Callable 21, Bank of Nova Scotia, Preferred, Series '23', Floating Rate, Perpetual 1, Brookfield Asset Management Inc, Preferred, Class 'A', Series '4' 23, Brookfield Asset Management Inc, Preferred, Class 'A', Series '8' 28, Canadian Apartment Properties REIT 956,336 26,048 25,668 Canadian Imperial Bank of Commerce 931,235 69,716 84,919 Cominar REIT 3,282,580 52,905 48,287 Dream Office REIT 2,526,855 67,431 43,891 Granite Real Estate Investment Trust, Stapled Units 1,073,081 39,984 40,734 Great-West Lifeco Inc, 450%, Preferred, Series 'I', Callable 66,040 1,587 1,400 Great-West Lifeco Inc, 540%, Preferred, Series 'P', Callable 35, Great-West Lifeco Inc, 565%, Preferred, Series 'L' 4, Great-West Lifeco Inc, 590%, Preferred, Series 'F' 41, ,060 H&R REIT 2,161,413 41,069 43,336 Manulife Financial Corp 4,454,658 80,136 92,390 Power Corp of Canada 641,180 17,694 18,556 Power Financial Corp 1,284,540 37,285 40,861 Power Financial Corp, 495%, Preferred, Series 'K', Callable 4, Power Financial Corp, 550%, Preferred, Series 'R', Callable 44,000 1,113 1,080 Power Financial Corp, 600%, Preferred, Series 'I', Callable 17, Power Financial Corp, Preferred, Series 'A', Floating Rate 15, Royal Bank of Canada 2,435, , ,622 Royal Bank of Canada, 445%, Preferred, Series 'AA', Callable 60,000 1,538 1,489 Royal Bank of Canada, 450%, Preferred, Series 'AD', Callable 14, Royal Bank of Canada, Preferred, Series 'AK', Variable Rate, Callable 18, Sun Life Financial Inc 1,533,215 43,970 66,158 Sun Life Financial Inc, 445%, Preferred, Class 'A', Series '3', Perpetual 9, Sun Life Financial Inc, 445%, Preferred, Class 'A', Series '4' 62,700 1,457 1,302 Sun Life Financial Inc, 450%, Preferred, Class 'A', Series '5', Perpetual 22, Sun Life Financial Inc, 475%, Preferred, Class 'A', Series '1', Callable 8, Toronto-Dominion Bank (The) 3,176, , , ,752 1,048, % Industrials Canadian National Railway Co 1,425,410 79, ,255 79, ,255 24% Materials Agrium Inc 129,390 11,446 16,001 Barrick Gold Corp 1,878,100 50,433 19,232 Goldcorp Inc 732,000 20,116 11,705 Potash Corp of Saskatchewan Inc 840,160 34,523 19,912 Teck Resources Ltd, Class 'B' 1,469,430 47,019 7, ,537 74,697 16% The accompanying notes are an integral part of these financial statements 5

6 Schedule of Investment Portfolio As at December 31, 2015 (cont'd) Number Security of Shares Telecommunication Services BCE Inc 1,954,510 74, ,488 BCE Inc, Preferred, Series 'AK', Convertible, Variable Rate, Perpetual 16, TELUS Corp 1,622,700 44,946 62, , ,824 37% Utilities Capital Power Corp 1,530,550 37,163 27,198 Fortis Inc 1,010,593 30,456 37,806 Fortis Inc, 490%, Preferred, Series 'E' 38,700 1, TransAlta Corp 4,865,845 67,670 23,892 Westcoast Energy Inc, 560%, Preferred, Series '8', Perpetual 12, ,638 90,171 20% TOTAL CANADIAN EQUITIES 1,921,238 1,952, % INTERNATIONAL EQUITIES 1 Australia (note 10) BHP Billiton Ltd, ADR 561,980 39,425 20,031 39,425 20,031 04% 5 Austria (note 10) Erste Group Bank AG 121,460 3,669 5,280 3,669 5,280 01% 5 Belgium (note 10) UCB SA 27,850 2,967 3,486 2,967 3,486 01% 3 China (note 10) Alibaba Group Holding Ltd 29,610 3,251 3,330 Tencent Holdings Ltd 242,200 5,523 6,594 8,774 9,924 02% 4 Denmark (note 10) GN Store Nord AS 109,488 3,108 2,764 Pandora AS 42,110 3,823 7,399 6,931 10,163 02% 5 France (note 10) Accor SA 112,802 6,754 6,786 Carrefour SA 156,622 6,165 6,276 PSA Peugeot Citroën SA 105,530 1,608 2,572 Total SA 77,819 4,877 4,829 Valeo SA 19,050 3,630 4,083 23,034 24,546 05% 5 Germany (note 10) Fresenius Medical Care AG 58,690 5,505 6,860 Symrise AG, Bearer 32,109 2,116 2,961 Wirecard AG 75,580 4,270 5,285 11,891 15,106 03% 7 Hong Kong (note 10) AIA Group Ltd 1,049,600 8,101 8,733 Hang Seng Bank Ltd 88,400 1,579 2,328 9,680 11,061 03% India HDFC Bank Ltd, ADR 52,988 4,039 4,516 4,039 4,516 01% 5 Ireland (note 10) CRH PLC 81,240 3,264 3,262 Ingersoll-Rand PLC 81,340 5,803 6,223 Shire PLC 81,070 7,087 7,769 16,154 17,254 04% 5 Italy (note 10) Intesa Sanpaolo 1,590,220 6,328 7,384 Mediaset SPA 530,170 3,356 3,055 9,684 10,439 02% 8 Japan (note 10) Keyence Corp 5,300 2,312 4,093 Nidec Corp 55,300 3,717 5,626 Ori Corp 185,800 3,190 3,669 Seven & I Holdings Co Ltd 36,800 2,290 2,351 Uni-Charm Corp 62,300 1,363 1,777 12,872 17,516 04% 9 Peru (note 10) Credicorp Ltd 16,110 2,815 2,169 2,815 2,169 01% 5 Portugal (note 10) Jeronimo Martins SGPS SA 147,910 2,737 2,668 2,737 2,668 01% Average Cost Fair Value % of Net Assets 6 The accompanying notes are an integral part of these financial statements

7 Schedule of Investment Portfolio As at December 31, 2015 (cont'd) Number Security of Shares 10 Sweden (note 10) Skandinaviska Enskilda Banken, Series 'A' 318,714 4,708 4,670 4,708 4,670 01% 2 Switzerland (note 10) Adecco SA, Registered 49,283 4,492 4,691 Roche Holding AG Genusscheine 32,135 10,786 12,271 15,278 16,962 04% 6 United Kingdom (note 10) Admiral Group PLC 116,490 3,120 3,942 Ashtead Group PLC 133,423 2,490 3,045 Capita PLC 197,656 3,993 4,871 Delphi Automotive PLC 20,380 2,351 2,418 Liberty Global PLC, Series 'A' 88,680 4,881 5,198 Liberty Global PLC, Series 'C' 86,110 4,211 4,858 Prudential PLC 142,110 3,689 4,438 Royal Bank of Scotland Group PLC 965,233 6,089 5,946 Whitbread PLC 40,593 3,211 3,644 34,035 38,360 08% 11 United States (note 10) Consumer Discretionary Amazoncom Inc 10,380 5,138 9,708 Chipotle Meican Grill Inc, Class 'A' 3,220 2,455 2,138 Harman International Industries Inc 57,142 7,130 7,449 Home Depot Inc 59,680 5,312 10,921 Macy's Inc 303,470 20,269 14,689 Signet Jewelers Ltd 34,990 5,012 5,989 Sirius XM Holdings Inc 799,670 3,907 4,503 Skechers USA Inc, Class 'A' 40,950 2,290 1,712 Tractor Supply Co 53,440 4,166 6,322 Ulta Salon, Cosmetics & Fragrance Inc 28,780 4,192 7,367 59,871 70,798 16% Consumer Staples Costco Wholesale Corp 13,460 1,757 3,008 Estée Lauder Cos Inc, Class 'A' 51,130 4,311 6,230 General Mills Inc 205,150 15,594 16,368 Mondelez International Inc, Class 'A' 86,790 4,033 5,385 Wal-Mart Stores Inc 189,720 16,208 16,092 WhiteWave Foods Co, Class 'A' 89,090 3,298 4,796 45,201 51,879 12% Energy Continental Resources Inc 59,490 4,280 1,892 EOG Resources Inc 62,930 7,253 6,164 EQT Corp 57,780 6,468 4,168 Schlumberger Ltd 28,920 3,243 2,791 21,244 15,015 03% Financials American Tower Corp 53,200 5,295 7,137 Charles Schwab Corp (The) 84,780 2,446 3,863 Interactive Brokers Group Inc, Class 'A' 40,390 2,176 2,437 Intercontinental Echange Inc 18,593 4,095 6,593 ishares U S Consumer Goods ETF 84,080 10,187 12,600 LendingClub Corp 220,280 4,055 3,368 MarketAess Holdings Inc 8,910 1,308 1,376 MGIC Investment Corp 337,030 4,670 4,118 Public Storage Inc 17,020 4,110 5,833 Zions Bancorp 161,360 5,267 6,095 43,609 53,420 12% Health Care Aleion Pharmaceuticals Inc 17,490 3,362 4,616 Becton, Dickinson & Co 38,190 6,895 8,143 Boston Scientific Corp 147,990 3,192 3,776 Bristol-Myers Squibb Co 74,460 4,070 7,088 Celgene Corp 51,570 5,385 8,546 Cerner Corp 63,390 4,042 5,278 Pfizer Inc 322,330 13,780 14,397 Verte Pharmaceuticals Inc 18,680 3,140 3,252 43,866 55,096 12% Industrials CSX Corp 767,030 32,744 27,542 FedE Corp 15,380 2,506 3,171 Fortune Brands Home & Security Inc 99,040 4,489 7,606 HD Supply Holdings Inc 61,980 2,658 2,575 Kansas City Southern Industries Inc 29,160 3,962 3,013 Owens Corning Inc 68,043 3,418 4,428 Union Pacific Corp 58,540 6,900 6,334 56,677 54,669 12% Average Cost Fair Value % of Net Assets The accompanying notes are an integral part of these financial statements 7

8 Schedule of Investment Portfolio As at December 31, 2015 (cont'd) Number Security of Shares Information Technology Adobe Systems Inc 90,010 7,260 11,700 Alliance Data Systems Corp 7,980 2,598 3,054 Alphabet Inc, Class 'A' 7,700 4,793 8,289 Alphabet Inc, Class 'C' 8,961 5,545 9,410 Cisco Systems Inc 446,470 12,189 16,776 Cognizant Technology Solutions Corp, Class 'A' 109,800 6,269 9,119 Equini Inc 15,705 3,571 6,571 Facebook Inc 85,180 6,694 12,335 MasterCard Inc, Class 'A' 49,970 4,176 6,732 Microsoft Corp 138,475 7,359 10,630 Visa Inc, Class 'A' 64,470 3,808 6,918 64, ,534 22% Total United States 334, ,411 89% TOTAL INTERNATIONAL EQUITIES 543, , % TOTAL EQUITIES 2,464,661 2,568, % Average Cost Fair Value % of Net Assets Security Coupon Rate (%) Maturity Date Additional Details Par Value Average Cost Fair Value % of Net Assets CANADIAN BONDS Government of Canada & Guaranteed Canada Housing Trust No 1 125% 2020/12/15 59,470,000 59,332 59,419 Canada Housing Trust No 1 315% 2023/09/15 Series '55' 3,675,000 3,987 4,049 Canada Housing Trust No 1 195% 2025/12/15 16,170,000 16,027 16,027 Government of Canada 150% 2023/06/01 4,000,000 3,987 4,093 Government of Canada 225% 2025/06/01 11,860,000 12,716 12,751 Government of Canada 150% 2044/12/01 100, Government of Canada 350% 2045/12/01 5,950,000 7,557 7,717 Government of Canada 125% 2047/12/01 60, , ,263 23% Provincial Government & Guaranteed New Brunswick F-M Project Company Inc 647% 2027/11/30 169, Ontario Electricity Financial Corp 890% 2022/08/18 Series 'FV6' 190, Province of British Columbia 495% 2040/06/18 61,130,000 77,608 80,319 Province of New Brunswick 285% 2023/06/02 18,780,000 17,914 19,679 Province of Ontario 260% 2025/06/02 31,740,000 32,413 32,447 Province of Ontario 460% 2039/06/02 35,795,000 40,872 43,951 Province of Quebec 625% 2032/06/01 10,975,000 16,268 15,561 Province of Saskatchewan 320% 2024/06/03 26,660,000 28,632 28,716 Province of Saskatchewan 580% 2033/09/05 12,220,000 17,114 16,673 Province of Saskatchewan 340% 2042/02/03 9,305,000 9,227 9,499 Province of Saskatchewan 390% 2045/06/02 7,460,000 8,172 8,341 Province of Saskatchewan 275% 2046/12/02 45,960,000 40,284 41, , ,027 65% Municipal Government & Guaranteed Greater Toronto Airports Authority 304% 2022/09/21 Callable 7,155,000 7,158 7,638 Municipal Finance Authority of British Columbia 488% 2019/06/03 20,185,000 23,268 22,615 Municipal Finance Authority of British Columbia 445% 2020/06/01 25,185,000 27,338 28,356 Municipal Finance Authority of British Columbia 375% 2023/09/26 23,180,000 23,152 25,636 Vancouver International Airport Authority 743% 2026/12/07 Series 'B', Step Coupon 4,235,000 5,854 5,996 86,770 90,241 20% Mortgage-Backed Securities Genesis Trust II 170% 2020/04/15 Series '15-1' 5,100,000 5,097 5,073 Genesis Trust II 243% 2026/05/15 Class 'A', Series '2014-1' 2,630,000 2,743 2,695 Institutional Mortgage Securities Canada Inc 194% 2024/09/12 Class 'A1', Series '2015-6', Restricted, Callable 5,465,044 5,465 5,378 Real Estate Asset Liquidity Trust 445% 2016/08/12 Class 'A1', Series '2006-3' 5, Real Estate Asset Liquidity Trust 520% 2017/03/12 Class 'A1', Series '2007-2', Variable Rate, Callable 100, Real Estate Asset Liquidity Trust 520% 2017/06/12 Class 'A2', Series '2007-2' 1,100,000 1,168 1,150 14,584 14,405 03% 11 Corporate (note 10) BC ULC / New Red Finance Inc 600% 2022/04/01 Callable, USD 1,575,000 1,981 2, International Inc 499% 2020/06/16 Callable 11,385,000 11,378 13, International Inc 335% 2024/05/16 Callable 270, International Inc 575% 2036/02/14 Series '06D1' 14,645,000 17,057 18,162 Air Canada 763% 2019/10/01 Callable 3,300,000 3,575 3,469 Air Canada 875% 2020/04/01 Callable, USD 2,500,000 2,983 3,697 Alimentation Couche-Tard Inc 332% 2019/11/01 8,585,000 8,607 8,952 Alimentation Couche-Tard Inc 390% 2022/11/01 Series '3' 8,685,000 8,709 9,181 Alimentation Couche-Tard Inc 360% 2025/06/02 Series '5', Restricted, Callable 15,440,000 15,440 15,555 AltaGas Ltd 440% 2024/03/15 Callable 6,045,000 6,511 6,351 Athabasca Oil Corp 750% 2017/11/19 Callable 380, AutoCanada Inc 563% 2021/05/25 Restricted 2,900,000 2,941 2,838 Bank of Montreal 239% 2017/07/12 Callable 125, Bank of Montreal 224% 2017/12/11 Callable 255, Bank of Montreal 210% 2020/10/06 Callable 1,800,000 1,800 1,811 Bank of Montreal 398% 2021/07/08 Variable Rate, Callable 18,445,000 18,532 18,693 8 The accompanying notes are an integral part of these financial statements

9 Schedule of Investment Portfolio As at December 31, 2015 (cont'd) Security Coupon Rate (%) Maturity Date Additional Details Par Value Bank of Montreal 212% 2022/03/16 Callable 8,580,000 8,577 8,495 Bank of Montreal 617% 2023/03/28 Series 'F', Variable Rate, Callable 37,970,000 41,145 41,592 Bank of Montreal Subordinated Notes Trust 575% 2022/09/26 Variable Rate, Callable 65, Bank of Nova Scotia 133% 2018/05/01 2,720,000 2,718 2,711 Bank of Nova Scotia 240% 2019/10/28 15,355,000 15,351 15,680 Bank of Nova Scotia 287% 2021/06/04 Series 'DPNT' 6,185,000 6,468 6,402 Bank of Nova Scotia 290% 2022/08/03 Variable Rate, Callable 330, Bank of Nova Scotia 304% 2024/10/18 Variable Rate, Callable 13,230,000 13,230 13,651 Bayte Energy Corp 513% 2021/06/01 Callable, USD 50, Bayte Energy Corp 563% 2024/06/01 Callable, USD 500, Bell Canada 541% 2016/09/26 Callable 45, Bell Canada 335% 2019/06/18 Series 'M-25', Callable 5,465,000 5,460 5,703 Bell Canada 315% 2021/09/29 Callable 4,590,000 4,575 4,727 Bell Canada 335% 2023/03/22 Series 'M-26', Callable 6,145,000 6,138 6,289 Bell Canada 888% 2026/04/17 240, Bell Canada 435% 2045/12/18 Callable 4,365,000 4,344 4,019 Blackbird Infrastructure 407 General Partnership 171% 2021/10/08 Series 'B', Variable Rate, Callable 4,905,000 4,867 4,899 Bombardier Inc 775% 2020/03/15 Callable, USD 4,900,000 6,165 5,509 Bombardier Inc 613% 2023/01/15 Callable, USD 1,475,000 1,666 1,418 Bombardier Inc 750% 2025/03/15 Callable, USD 300, Bombardier Inc 735% 2026/12/22 200, British Columbia Ferry Services Inc 470% 2043/10/23 Series '13-1', Restricted, Callable 7,990,000 7,990 9,089 British Columbia Ferry Services Inc 429% 2044/04/28 Series '14-1', Callable 90, Brookfield Asset Management Inc 595% 2035/06/14 960, ,052 BRP Finance ULC 525% 2018/11/05 Series '3', Callable 880, BRP Finance ULC 514% 2020/10/13 Series '7', Callable 9,065,000 9,093 10,059 BRP Finance ULC 479% 2022/02/07 Callable 210, Caisse centrale Desjardins du Québec 228% 2016/10/17 280, Calloway REIT 405% 2020/07/27 Callable 2,120,000 2,257 2,251 Calloway REIT 375% 2021/02/11 Series 'L' 4,945,000 4,949 5,179 Calloway REIT 399% 2023/05/30 7,780,000 7,797 8,085 Canadian Natural Resources Ltd 260% 2019/12/03 Callable 16,440,000 16,411 16,413 Cascades Inc 550% 2021/07/15 Restricted, Callable 3,425,000 3,411 3,340 Cascades Inc 550% 2022/07/15 Callable, USD 1,000,000 1,093 1,347 Choice Properties REIT 230% 2020/09/14 Series 'E', Callable 4,630,000 4,628 4,617 Clarica Life Insurance Co 630% 2028/05/15 Series '2' 430, Corus Entertainment Inc 425% 2020/02/11 Callable 2,350,000 2,310 2,186 CT REIT 285% 2022/06/09 Series 'A', Callable 3,270,000 3,270 3,265 CU Inc 409% 2044/09/02 Callable 10,410,000 10,410 10,578 Daimler Canada Finance Inc 228% 2017/02/17 7,140,000 7,140 7,199 Daimler Canada Finance Inc 178% 2019/08/19 5,230,000 5,226 5,187 DHX Media Ltd 588% 2021/12/02 Restricted, Callable 2,315,000 2,314 2,279 Dream Office REIT 342% 2018/06/13 Series 'A', Callable 9,025,000 9,048 9,122 Eldorado Gold Corp 613% 2020/12/15 Callable, USD 3,875,000 4,231 4,718 Enbridge Inc 477% 2019/09/02 Callable 30,480,000 30,644 32,384 Enbridge Inc 575% 2039/09/02 Callable 190, Enbridge Inc 424% 2042/08/27 Callable 8,360,000 8,310 6,886 Enbridge Pipelines Inc 533% 2040/04/06 Callable 4,645,000 5,206 5,115 Evraz Inc NA Canada 750% 2019/11/15 Callable, USD 700, Federated Co-Operatives Ltd 392% 2025/06/17 Restricted, Callable 9,930,000 9,926 9,968 First Quantum Minerals Ltd 675% 2020/02/15 Callable, USD 4,994,000 5,582 4,492 First Quantum Minerals Ltd 725% 2022/05/15 Callable, USD 1,000,000 1, Ford Credit Canada Ltd 245% 2020/05/07 Restricted 6,575,000 6,575 6,496 Ford Credit Canada Ltd 328% 2021/07/02 24,515,000 24,515 24,814 Fortis Inc 651% 2039/07/04 Callable 1,465,000 1,768 1,917 Garda World Security Corp 725% 2021/11/15 Callable, USD 500, Gateway Casinos & Entertainment Ltd 850% 2020/11/26 Restricted, Callable 2,753,000 2,814 2,654 GE Capital Canada Funding Co 568% 2019/09/10 8,765,000 8,876 10,008 GE Capital Canada Funding Co 460% 2022/01/26 5,655,000 5,788 6,404 George Weston Ltd 378% 2016/10/25 Callable 8,265,000 8,265 8,422 GFL Environmental Corp 750% 2018/06/18 Restricted, Callable 827, Gibson Energy Inc 700% 2020/07/15 Callable 4,225,000 4,603 4,093 Gibson Energy Inc 675% 2021/07/15 Callable, USD 1,195,000 1,420 1,592 Gibson Energy Inc 538% 2022/07/15 Restricted, Callable 4,000,000 4,000 3,687 Glacier Credit Card Trust 276% 2018/11/20 Series '2013-1' 3,895,000 4,049 4,011 Glacier Credit Card Trust 224% 2020/09/20 45, Great Canadian Gaming Corp 663% 2022/07/25 Callable 5,968,000 6,383 5,993 Great-West Lifeco Inc 465% 2020/08/13 Callable 485, Great-West Lifeco Inc 667% 2033/03/21 Callable 530, HCN Canadian Holdings-1 LP 335% 2020/11/25 Restricted 1,585,000 1,584 1,606 Hospital Infrastructure Partners NOH Partnership 544% 2045/01/31 Series 'A', Sinkable, Callable 4,210,000 4,210 4,938 HSBC Bank Canada 208% 2018/11/26 3,600,000 3,600 3,622 Hudbay Minerals Inc 950% 2020/10/01 Callable, USD 1,306,000 1,553 1,333 Husky Energy Inc 500% 2020/03/12 Callable 325, Husky Energy Inc 355% 2025/03/12 Callable 6,370,000 6,350 6,161 Hydro One Inc 278% 2018/10/09 Callable 60, Hydro One Inc 459% 2043/10/09 Callable 10,320,000 10,322 11,412 Iron Mountain Canada Operations ULC 613% 2021/08/15 Callable 4,987,000 5,187 5,137 Loblaw Cos Ltd 486% 2023/09/12 Callable 15,755,000 15,755 17,713 Lundin Mining Corp 750% 2020/11/01 Callable, USD 1,500,000 1,791 1,951 Lundin Mining Corp 788% 2022/11/01 Callable, USD 600, Magna International Inc 310% 2022/12/15 Callable 4,525,000 4,529 4,588 Average Cost Fair Value % of Net Assets The accompanying notes are an integral part of these financial statements 9

10 Schedule of Investment Portfolio As at December 31, 2015 (cont'd) Security Coupon Rate (%) Maturity Date Additional Details Par Value Manufacturers Life Insurance Co 318% 2027/11/22 Variable Rate, Callable 6,730,000 6,730 6,834 Manulife Financial Capital Trust II 741% 2019/12/31 Series '1', Variable Rate, Callable 8,080,000 9,534 9,552 Manulife Financial Corp 777% 2019/04/08 Callable 22,855,000 27,309 27,008 Master Credit Card Trust 263% 2017/01/21 23,370,000 23,429 23,730 Mattamy Group Corp 650% 2020/11/15 Callable, USD 4,745,000 5,227 6,270 MEG Energy Corp 650% 2021/03/15 Callable, USD 895,000 1, MEG Energy Corp 638% 2023/01/30 Callable, USD 1,000,000 1, Metro Inc 320% 2021/12/01 Series 'C', Restricted, Callable 2,875,000 2,875 2,975 Metro Inc 503% 2044/12/01 Series 'D', Restricted, Callable 4,675,000 4,673 4,787 Millar Western Forest Products Ltd 850% 2021/04/01 Callable, USD 1,200,000 1, National Bank of Canada 211% 2022/03/18 9,465,000 9,458 9,332 NBC Asset Trust 724% 2018/06/30 Variable Rate, Perpetual 385, NBC Asset Trust 745% 2020/06/30 Series '2', Variable Rate, Perpetual 375, New Gold Inc 700% 2020/04/15 Callable, USD 1,000,000 1,163 1,242 New Gold Inc 625% 2022/11/15 Callable, USD 2,455,000 2,839 2,718 Newalta Corp 588% 2021/04/01 Restricted, Callable 780, North West Redwater Partnership / NWR Financing Co Ltd 320% 2024/07/22 Series 'A', Callable 2,655,000 2,651 2,731 North West Redwater Partnership / NWR Financing Co Ltd 405% 2044/07/22 Series 'B', Callable 4,740,000 4,728 4,625 Novelis Inc 875% 2020/12/15 Callable, USD 3,138,000 3,815 4,006 Paramount Resources Ltd 763% 2019/12/04 Callable 3,375,000 3,553 2,711 Parkland Fuel Corp 550% 2021/05/28 Restricted, Callable 2,600,000 2,619 2,575 Parkland Fuel Corp 600% 2022/11/21 Restricted, Callable 1,800,000 1,818 1,801 Penske Truck Leasing Canada Inc 365% 2018/02/01 Callable 6,915,000 6,957 7,136 Plenary Health Care Partnerships Humber LP 482% 2044/11/30 Callable 8,230,000 8,366 9,393 Plenary Properties LTAP LP 629% 2044/01/31 Callable 14,450,079 18,725 18,722 Precision Drilling Corp 663% 2020/11/15 Callable, USD 850, Precision Drilling Corp 650% 2021/12/15 Callable, USD 175, Precision Drilling Corp 525% 2024/11/15 Callable, USD 2,250,000 2,479 2,133 Quebecor Media Inc 738% 2021/01/15 Callable 75, Quebecor Media Inc 663% 2023/01/15 Callable 7,500,000 7,769 7,632 RBC Capital Trust 682% 2018/06/30 Series '2015', Perpetual, Callable 6,975,000 8,116 7,756 River Cree Enterprises Ltd 1100% 2021/01/20 Callable 750, Rogers Communications Inc 400% 2022/06/06 Callable 400, Rogers Communications Inc 400% 2024/03/13 Callable 13,445,000 13,405 14,100 Rogers Communications Inc 668% 2039/11/04 Callable 215, Rogers Communications Inc 611% 2040/08/25 18,215,000 18,800 20,975 Royal Bank of Canada 226% 2018/03/12 1,360,000 1,360 1,385 Royal Bank of Canada 282% 2018/07/12 190, Royal Bank of Canada 192% 2020/07/17 13,325,000 13,325 13,322 Royal Bank of Canada 286% 2021/03/04 17,605,000 17,603 18,275 Royal Bank of Canada 197% 2022/03/02 9,545,000 9,545 9,350 Russel Metals Inc 600% 2022/04/19 Callable 830, Scotiabank Tier I Trust 780% 2019/06/30 Variable Rate, Callable 1,290,000 1,491 1,516 SGTP Highway Bypass LP 411% 2045/01/31 Series 'A', Sinkable, Restricted 5,615,000 5,615 5,636 Sherritt International Corp 750% 2020/09/24 Series '2', Callable 682, Sherritt International Corp 788% 2022/10/11 Callable 400, Sirius XM Canada Holdings Inc 563% 2021/04/23 Callable 2,900,000 2,941 2,879 SNC-Lavalin Group Inc 619% 2019/07/03 Callable 9,945,000 10,545 11,264 SNC-Lavalin Innisfree McGill Finance Inc 663% 2044/06/30 Callable 2,928,985 3,464 3,781 Sobeys Inc 352% 2018/08/08 3,265,000 3,264 3,383 Sobeys Inc 470% 2023/08/08 Callable 9,615,000 9,617 10,486 Southern Pacific Resource Corp 875% 2018/01/25 Callable 1,000, Sun Life Financial Inc 570% 2019/07/02 Series 'D', Callable 400, Sun Life Financial Inc 438% 2022/03/02 Series '2012-1', Variable Rate, Callable 15,365,000 15,371 15,819 Sun Life Financial Inc 277% 2024/05/13 Series '14-1', Callable 3,625,000 3,623 3,684 Sun Life Financial Inc 260% 2025/09/25 Variable Rate, Callable 1,865,000 1,863 1,866 Suncor Energy Inc 310% 2021/11/26 Series '5', Callable 5,120,000 5,103 5,262 Suncor Energy Inc 539% 2037/03/26 Callable 12,615,000 11,978 13,542 Superior Plus LP 650% 2021/12/09 Callable 1,250,000 1,250 1,231 TD Capital Trust III 724% 2018/12/31 Variable Rate, Perpetual 4,755,000 5,696 5,436 TD Capital Trust IV 663% 2021/06/30 Variable Rate, Callable 18,915,000 19,054 22,207 TELUS Corp 505% 2020/07/23 Series 'CH', Callable 22,560,000 26,067 25,202 TELUS Corp 335% 2023/03/15 Series 'CJ', Callable 4,760,000 4,754 4,856 TELUS Corp 375% 2025/01/17 Callable 6,115,000 6,102 6,261 TELUS Corp 440% 2043/04/01 Callable 29,880,000 29,837 27,246 TELUS Corp 515% 2043/11/26 Callable 1,225,000 1,400 1,255 Teranet Holdings LP 481% 2020/12/16 Callable 2,155,000 2,356 2,367 Teranet Holdings LP 575% 2040/12/17 Callable 13,915,000 14,965 15,161 Tervita Corp 800% 2018/11/15 Callable, USD 490, Thomson Reuters Corp 331% 2021/11/12 Callable 6,355,000 6,356 6,519 Toronto-Dominion Bank (The) 295% 2016/08/02 120, Toronto-Dominion Bank (The) 478% 2016/12/14 Variable Rate, Callable 11,350,000 11,578 11,656 Toronto-Dominion Bank (The) 576% 2017/12/18 Variable Rate, Callable 11,465,000 12,709 12,288 Toronto-Dominion Bank (The) 245% 2019/04/02 3,865,000 3,865 3,966 Toronto-Dominion Bank (The) 169% 2020/04/02 10,490,000 10,490 10,433 TransCanada PipeLines Ltd 455% 2041/11/15 Callable 2,375,000 2,341 2,403 Trilogy Energy Corp 725% 2019/12/13 Callable 1,250,000 1,294 1,067 Trinidad Drilling Ltd 788% 2019/01/15 Callable, USD 1,400,000 1,628 1,714 Union Gas Ltd 520% 2040/07/23 Callable 860, ,005 Valeant Pharmaceuticals International Inc 750% 2021/07/15 Callable, USD 1,000,000 1,214 1,387 Valeant Pharmaceuticals International Inc 563% 2021/12/01 Callable, USD 2,490,000 2,900 3,213 Average Cost Fair Value % of Net Assets 10 The accompanying notes are an integral part of these financial statements

11 Schedule of Investment Portfolio As at December 31, 2015 (cont'd) Security Coupon Rate (%) Maturity Date Additional Details Par Value VRX Escrow Corp 613% 2025/04/15 Callable, USD 1,425,000 1,873 1,765 Wells Fargo Financial Canada Corp 277% 2017/02/09 660, Wells Fargo Financial Canada Corp 278% 2018/11/15 1,235,000 1,238 1,277 Wells Fargo Financial Canada Corp 294% 2019/07/25 11,565,000 11,565 12,067 Wells Fargo Financial Canada Corp 304% 2021/01/29 21,335,000 21,463 22,358 West Edmonton Mall Property Inc 406% 2024/02/13 Series 'B2', Sinkable 5,440,711 5,441 5,759 Westcoast Energy Inc 457% 2020/07/02 Series '10', Callable 905, Westcoast Energy Inc 885% 2025/07/21 14,440,000 21,501 20,181 Western Energy Services Corp 788% 2019/01/30 Callable 1,320,000 1,409 1,232 Yellow Pages Digital & Media Solutions Ltd 925% 2018/11/30 Callable 47, ,085,636 1,104, % TOTAL CANADIAN BONDS 1,579,781 1,609, % INTERNATIONAL BONDS 1, 11 Australia (note 10) Commonwealth Bank of Australia 515% 2020/04/09 500, FMG Resources (August 2006) Pty Ltd 825% 2019/11/01 Callable, USD 950,000 1,112 1,046 FMG Resources (August 2006) Pty Ltd 688% 2022/04/01 Callable, USD 4,650,000 4,499 3,978 6,174 5,588 01% 11 Cayman Islands (note 10) Transocean Inc 650% 2020/11/15 Callable, USD 1,450,000 1,545 1,368 Transocean Inc 638% 2021/12/15 Variable Rate, Callable, USD 2,420,000 2,562 2,172 4,107 3,540 01% 11 Italy (note 10) Telecom Italia SPA 530% 2024/05/30 USD 1,025,000 1,122 1,401 1,122 1,401 00% 11 Luembourg (note 10) Altice SA 775% 2022/05/15 USD 1,500,000 1,933 1,860 ArcelorMittal SA 600% 2021/03/01 Callable, USD 1,500,000 1,746 1,658 ArcelorMittal SA 625% 2022/02/25 Callable, USD 2,665,000 3,319 2,978 Coveris Holdings SA 788% 2019/11/01 Callable, USD 1,250,000 1,453 1,517 Ineos Group Holdings SA 613% 2018/08/15 Callable, USD 3,375,000 3,809 4,612 Intelsat Jackson Holdings SA 725% 2020/10/15 Callable, USD 5,127,000 6,066 6,136 Intelsat Luembourg SA 775% 2021/06/01 Callable, USD 125, Wind Acquisition Finance SA 738% 2021/04/23 Callable, USD 200, ,697 19,103 04% 11 Netherlands (note 10) Fiat Chrysler Automobiles NV 525% 2023/04/15 Callable, USD 4,450,000 5,457 6,037 5,457 6,037 02% 11 United Kingdom (note 10) Royal Bank of Scotland Group PLC 513% 2024/05/28 USD 1,000,000 1,083 1,401 1,083 1,401 00% 11 United States (note 10) Alcoa Inc 587% 2022/02/23 USD 750, ,017 Aleris International Inc 763% 2018/02/15 Callable, USD 147, Aleris International Inc 788% 2020/11/01 Callable, USD 1,370,000 1,508 1,454 AMC Entertainment Inc 588% 2022/02/15 Callable, USD 1,000,000 1,136 1,429 Amsted Industries Inc 500% 2022/03/15 Callable, USD 950,000 1,037 1,321 Amsted Industries Inc 538% 2024/09/15 Callable, USD 1,000,000 1,088 1,363 Anheuser-Busch InBev Finance Inc 238% 2018/01/25 Callable 7,080,000 7,048 7,166 Berry Plastics Corp 550% 2022/05/15 Callable, USD 300, Cablevision Systems Corp 588% 2022/09/15 Callable, USD 250, California Resources Corp 800% 2022/12/15 Callable, USD 1,169, California Resources Corp 600% 2024/11/15 Callable, USD 438, Calpine Corp 788% 2023/01/15 Callable, USD 79, Calpine Corp 550% 2024/02/01 Callable, USD 1,415,000 1,719 1,738 CCO Holdings LLC / CCO Holdings Capital Corp 650% 2021/04/30 Callable, USD 2,050,000 2,406 2,955 CCO Holdings LLC / CCO Holdings Capital Corp 525% 2022/09/30 Callable, USD 1,250,000 1,419 1,751 CCO Holdings LLC / CCO Holdings Capital Corp 575% 2024/01/15 Callable, USD 1,000,000 1,279 1,425 CenturyLink Inc 563% 2020/04/01 USD 3,370,000 3,905 4,628 CenturyLink Inc 645% 2021/06/15 Callable, USD 5,725,000 6,764 7,763 Chesapeake Energy Corp 663% 2020/08/15 Callable, USD 1,270,000 1, CHS / Community Health Systems Inc 713% 2020/07/15 Callable, USD 1,550,000 1,833 2,147 CHS / Community Health Systems Inc 688% 2022/02/01 Callable, USD 2,000,000 2,299 2,639 Cliffs Natural Resources Inc 395% 2018/01/15 Callable, USD 625, Denbury Resources Inc 550% 2022/05/01 Callable, USD 1,400,000 1, DISH DBS Corp 675% 2021/06/01 Callable, USD 375, DISH DBS Corp 588% 2022/07/15 USD 5,000,000 5,993 6,469 DISH DBS Corp 588% 2024/11/15 USD 730, Dynegy Inc 738% 2022/11/01 Callable, USD 1,175,000 1,416 1,423 Evolution Escrow Issuer LLC 750% 2022/03/15 Callable, USD 500, Eopack Holding Corp 1000% 2018/06/01 Callable, USD 100, First Data Corp 700% 2023/12/01 Callable, USD 500, Frontier Communications Corp 875% 2022/04/15 Callable, USD 175, Frontier Communications Corp 713% 2023/01/15 USD 1,500,000 1,716 1,801 Frontier Communications Corp 763% 2024/04/15 USD 4,100,000 4,712 4,794 Frontier Communications Corp 688% 2025/01/15 Callable, USD 800, General Cable Corp 575% 2022/10/01 Variable Rate, Callable, USD 2,175,000 2,237 2,332 Goodyear Tire & Rubber Co (The) 700% 2022/05/15 Callable, USD 98, Griffon Corp 525% 2022/03/01 Callable, USD 1,700,000 1,832 2,252 H&E Equipment Services Inc 700% 2022/09/01 Callable, USD 2,973,000 3,551 4,052 Average Cost Fair Value % of Net Assets The accompanying notes are an integral part of these financial statements 11

12 Schedule of Investment Portfolio As at December 31, 2015 (cont'd) Security Coupon Rate (%) Maturity Date Additional Details Par Value HCA Inc 588% 2023/05/01 USD 6,625,000 7,494 9,442 HDTFS Inc 588% 2020/10/15 Callable, USD 3,200,000 3,701 4,588 HDTFS Inc 625% 2022/10/15 Callable, USD 500, Hertz Corp (The) 738% 2021/01/15 Callable, USD 250, Heion US Finance Corp / Heion Nova Scotia Finance ULC 888% 2018/02/01 Callable, USD 1,050,000 1,198 1,032 Iron Mountain Inc 575% 2024/08/15 Callable, USD 1,890,000 2,063 2,533 Land O' Lakes Capital Trust I 745% 2028/03/15 USD 2,100,000 2,293 3,095 Landry's Inc 938% 2020/05/01 Callable, USD 1,345,000 1,623 1,968 Levi Strauss & Co 500% 2025/05/01 Callable, USD 400, Linn Energy LLC / Linn Energy Finance Corp 625% 2019/11/01 Callable, USD 250, Linn Energy LLC / Linn Energy Finance Corp 863% 2020/04/15 USD 3,600,000 3, MasTec Inc 488% 2023/03/15 Callable, USD 375, Mercer International Inc 775% 2022/12/01 Callable, USD 1,375,000 1,556 1,931 Meritor Inc 625% 2024/02/15 Callable, USD 1,075,000 1,191 1,279 MGM Resorts International 675% 2020/10/01 Callable, USD 3,975,000 4,802 5,679 MGM Resorts International 663% 2021/12/15 USD 950,000 1,163 1,352 Micron Technology Inc 525% 2023/08/01 Callable, USD 900,000 1,127 1,124 Micron Technology Inc 550% 2025/02/01 Callable, USD 1,975,000 2,285 2,384 Navistar International Corp 825% 2021/11/01 Callable, USD 4,905,000 5,530 4,547 Neiman Marcus Group Ltd LLC 800% 2021/10/15 Callable, USD 2,126,000 2,603 2,192 Neptune Finco Corp 1088% 2025/10/15 Callable, USD 500, Netfli Inc 575% 2024/03/01 USD 600, Netfli Inc 588% 2025/02/15 USD 1,000,000 1,290 1,425 NRG Energy Inc 788% 2021/05/15 Callable, USD 1,590,000 1,931 2,074 NRG Energy Inc 663% 2023/03/15 Callable, USD 5,800,000 6,826 7,002 Outerwall Inc 588% 2021/06/15 Callable, USD 1,250,000 1,367 1,427 Post Holdings Inc 738% 2022/02/15 Callable, USD 2,725,000 3,214 3,945 Post Holdings Inc 600% 2022/12/15 Callable, USD 1,465,000 1,873 1,994 Resolute Forest Products Inc 588% 2023/05/15 Callable, USD 500, Reynolds Group Issuer Inc / Reynolds Group IssuerLLC / 575% 2020/10/15 USD Reynolds Group Issuer (Luembourg) SA 100, Reynolds Group Issuer Inc / Reynolds Group IssuerLLC / 825% 2021/02/15 Callable, USD Reynolds Group Issuer (Luembourg) SA 5,500,000 6,482 7,363 Sabine Pass Liquefaction LLC 563% 2021/02/01 Callable, USD 4,050,000 4,606 5,184 Sabine Pass LNG LP 650% 2020/11/01 Callable, USD 1,050,000 1,213 1,417 Sirius XM Radio Inc 600% 2024/07/15 Callable, USD 3,925,000 4,408 5,689 Sirius XM Radio Inc 538% 2025/04/15 Callable, USD 1,000,000 1,249 1,396 Sprint Capital Corp 690% 2019/05/01 Callable, USD 2,250,000 2,706 2,553 Sprint Communications Inc 838% 2017/08/15 Callable, USD 700, Sprint Communications Inc 700% 2020/08/15 Callable, USD 4,350,000 5,272 4,665 Sprint Communications Inc 600% 2022/11/15 USD 2,000,000 2,239 1,958 Sprint Corp 725% 2021/09/15 USD 2,000,000 2,397 2,095 Sprint Corp 788% 2023/09/15 USD 515, Sprint Corp 763% 2025/02/15 Callable, USD 250, Steel Dynamics Inc 525% 2023/04/15 Callable, USD 2,428,000 2,713 3,082 Tenet Healthcare Corp 500% 2019/03/01 Callable, USD 1,375,000 1,517 1,765 Tenet Healthcare Corp 813% 2022/04/01 Callable, USD 3,125,000 4,231 4,335 Tere Corp 600% 2021/05/15 Callable, USD 2,675,000 3,117 3,424 T-Mobile USA Inc 625% 2021/04/01 Callable, USD 7,345,000 8,638 10,494 T-Mobile USA Inc 600% 2023/03/01 Callable, USD 425, T-Mobile USA Inc 663% 2023/04/01 Callable, USD 475, Triumph Group Inc 525% 2022/06/01 Callable, USD 2,600,000 2,910 2,914 United Rentals North America Inc 763% 2022/04/22 Callable, USD 1,000,000 1,229 1,486 United States Steel Corp 738% 2020/04/01 Callable, USD 450, United States Steel Corp 750% 2022/03/15 Callable, USD 450, Universal Hospital Services Inc 763% 2020/08/15 Callable, USD 1,740,000 1,997 2,272 Valeant Pharmaceuticals International Inc 700% 2020/10/01 Callable, USD 1,950,000 2,273 2,705 Valeant Pharmaceuticals International Inc 725% 2022/07/15 Callable, USD 500, Wells Fargo & Co 387% 2025/05/21 Series 'O' 6,715,000 6,718 6,950 Windstream Corp 775% 2021/10/01 Callable, USD 3,175,000 3,779 3,479 Windstream Corp 638% 2023/08/01 Callable, USD 2,100,000 2,246 2,103 WMG Acquisition Corp 600% 2021/01/15 Callable, USD 1,950,000 2,217 2,725 WMG Acquisition Corp 675% 2022/04/15 Callable, USD 1,450,000 1,582 1,746 Wynn Las Vegas LLC / Wynn Las Vegas Capital Corp 425% 2023/05/30 Callable, USD 900,000 1,066 1,070 Wynn Las Vegas LLC / Wynn Las Vegas Capital Corp 550% 2025/03/01 USD 700, , ,640 49% TOTAL INTERNATIONAL BONDS 247, ,710 57% SUPRANATIONAL BONDS Asian Development Bank 465% 2027/02/16 29,105,000 27,622 34,731 Inter-American Development Bank 440% 2026/01/26 11,360,000 10,766 13,259 TOTAL SUPRANATIONAL BONDS 38,388 47,990 11% TOTAL BONDS 1,866,136 1,918, % TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS 4,330,797 4,487, % SHORT-TERM INVESTMENTS Bank of Nova Scotia 010% 2016/01/04 Term Deposit 11,000,000 15,221 15,221 Government of Canada 051% 2016/03/10 Treasury Bill 4,925,000 4,918 4,920 Government of Canada 048% 2016/03/24 Treasury Bill 15,375,000 15,355 15,358 Government of Canada 052% 2016/04/07 Treasury Bill 6,650,000 6,641 6,641 Royal Bank of Canada 045% 2016/01/04 Term Deposit 15,600,000 15,600 15,600 TOTAL SHORT-TERM INVESTMENTS 57,735 57,740 13% Less: Transaction costs included in average cost (1,539) TOTAL INVESTMENTS 4,386,993 4,545, % Average Cost Fair Value % of Net Assets 12 The accompanying notes are an integral part of these financial statements

13 Schedule of Investment Portfolio As at December 31, 2015 (cont'd) Security Coupon Rate (%) Maturity Date Additional Details Par Value Margin 17 00% Derivative assets 5,977 01% Derivative liabilities (10,031) (02)% Other Assets, less Liabilities 17,126 03% TOTAL NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS 4,558, % 1-11 Hedging reference number Refers to a corresponding number on the Schedule of Derivative Assets and Liabilities - Forward Foreign Currency Contracts Average Cost Fair Value % of Net Assets Schedule of Derivative Assets and Liabilities - Forward Foreign Currency Contracts (note 10) Hedging Ref No** Counterparty Credit Rating for Counterparty* Settlement Date Currency Buys Par Value Currency Sells Par Value Forward Rate Current Rate Unrealized Gain (Loss) 1 Bank of Montreal A /03/10 AUD 530,000 CAD 516, Royal Bank of Canada A /03/10 AUD 705,000 CAD 687, Royal Bank of Canada A /03/10 AUD 660,000 CAD 647, State Street Trust Co Canada A /03/10 AUD 450,000 CAD 446, State Street Trust Co Canada A /03/10 CAD 20,042,160 AUD 20,535, (592) 2 Credit Suisse, New York A /01/29 CHF 352,241 CAD 498, (11) 2 Credit Suisse, New York A /01/29 CHF 72,171 CAD 100, (1) 2 Credit Suisse, New York A /01/29 CAD 17,243,397 CHF 12,259, UBS AG, Stamford A /01/29 CNY 480,717 CAD 101, UBS AG, Stamford A /01/29 CAD 3,277,344 CNY 15,386, UBS AG, Stamford A /01/29 CAD 84,936 CNY 401, UBS AG, Stamford A /01/29 CAD 9,502,368 DKK 46,420, UBS AG, Stamford A /01/29 CAD 282,041 DKK 1,397, UBS AG, Stamford A /01/29 CAD 225,043 DKK 1,106, UBS AG, Stamford A /01/29 CAD 63,198,216 EUR 41,389, UBS AG, Stamford A /01/29 CAD 1,339,860 EUR 883, Credit Suisse, New York A /01/29 GBP 427,732 CAD 882, (9) 6 Credit Suisse, New York A /01/29 CAD 33,627,466 GBP 16,150, Credit Suisse, New York A /01/29 CAD 932,075 GBP 450, Credit Suisse, New York A /01/29 HKD 5,642,713 CAD 1,012, (4) 7 Credit Suisse, New York A /01/29 CAD 18,178,984 HKD 100,958, Credit Suisse, New York A /01/29 CAD 17,146,487 JPY 1,486,686, UBS AG, Stamford A /01/29 CAD 2,085,954 PEN 5,068, UBS AG, Stamford A /01/29 CAD 80,653 PEN 199, UBS AG, Stamford A /01/29 CAD 4,418,022 SEK 26,896, UBS AG, Stamford A /01/29 CAD 104,544 SEK 633, Bank of Montreal A /03/11 USD 1,845,000 CAD 2,506, Royal Bank of Canada A /03/11 USD 3,430,000 CAD 4,717, Royal Bank of Canada A /03/11 USD 2,210,000 CAD 3,070, (14) 11 Royal Bank of Canada A /03/11 USD 1,160,000 CAD 1,576, State Street Trust Co Canada A /03/11 USD 3,780,000 CAD 5,195, State Street Trust Co Canada A /03/11 USD 2,700,000 CAD 3,657, State Street Trust Co Canada A /03/11 USD 2,425,000 CAD 3,382, (27) 11 State Street Trust Co Canada A /03/11 USD 1,935,000 CAD 2,633, State Street Trust Co Canada A /03/11 USD 1,500,000 CAD 2,037, State Street Trust Co Canada A /03/11 USD 1,200,000 CAD 1,645, State Street Trust Co Canada A /03/11 USD 1,185,000 CAD 1,628, State Street Trust Co Canada A /03/11 USD 935,000 CAD 1,304, (11) 11 State Street Trust Co Canada A /03/11 USD 325,000 CAD 446, Toronto-Dominion Bank (The) A /03/11 USD 9,800,000 CAD 13,423, JPMorgan Chase & Co, New York A /01/29 CAD 287,804,674 USD 205,742, , JPMorgan Chase & Co, New York A /01/29 CAD 6,462,985 USD 4,658, Bank of Montreal A /03/11 CAD 3,822,932 USD 2,770, (9) 11 Bank of Montreal A /03/11 CAD 2,628,916 USD 1,900, Royal Bank of Canada A /03/11 CAD 343,082,659 USD 252,834, (6,702) 11 Royal Bank of Canada A /03/11 CAD 135,707,894 USD 100,010, (2,651) Derivative Assets and Liabilities - Forwards (4,054) * The credit rating of each counterparty (as rated by Standard & Poor's, a division of McGraw-Hill Financial Inc) of the forward foreign currency contracts held by the Fund meets or eceeds the minimum approved credit rating ** See corresponding reference number on the Schedule of Investment Portfolio The accompanying notes are an integral part of these financial statements 13

14 Supplemental Schedule to Schedule of Investment Portfolio Offsetting Arrangements (note 2d) (in 000s) The Fund may enter into various master netting arrangements or other similar agreements that do not meet the criteria for offsetting in the Statements of Financial Position but still allow for the related amounts to be set off in certain circumstances, such as bankruptcy or the termination of the contracts The following table reconciles the net amount of Over-The-Counter derivatives presented in the Statements of Financial Position, as at December 31, 2015 and 2014, to: l l The gross amount before offsetting required under IFRS; and The net amount after offsetting under the terms of master netting arrangements or other similar arrangements, but which do not meet the criteria for offsetting under IFRS Financial Assets and Liabilities Amounts Offset Amounts Not Offset Net Gross Assets (Liabilities) Amounts Offset Under IFRS Net Amounts Presented on Statements of Financial Position Master Netting Arrangements Cash Collateral Received As at December 31, 2015 OTC Derivative Assets $ 5,977 $ $ 5,977 $ (353) $ $ 5,624 OTC Derivative Liabilities (10,031) (10,031) 353 (9,678) Total $ (4,054) $ $ (4,054) $ $ $ (4,054) As at December 31, 2014 OTC Derivative Assets $ 1,873 $ $ 1,873 $ (228) $ $ 1,645 OTC Derivative Liabilities (8,997) (8,997) 228 (8,769) Total $ (7,124) $ $ (7,124) $ $ $ (7,124) Interests in Underlying Funds (note 4) As at December 31, 2015 and 2014, the Fund had no significant investments in underlying funds 14 The accompanying notes are an integral part of these financial statements

15 Financial Instrument Risks Investment Objective: (the Fund) seeks to provide a reasonably consistent level of monthly income while attempting to preserve capital by investing primarily in a diversified portfolio of debt and equity instruments Investment Strategies: The Fund aims to add value through prudent security selection based on fundamental, bottom-up analysis and through the allocation of assets between cash and fied income instruments, equities, such as common and preferred shares, income trusts, and other equity securities Asset allocation can vary over time depending on the portfolio sub-advisor s outlook for the economy and capital markets Significant risks that are relevant to the Fund are discussed here General information on risk management and specific discussion on concentration, credit, currency, interest rate, liquidity, and other price/market risk can be found in note 2 of the financial statements In the following risk tables, Net Assets is defined as meaning Net assets attributable to holders of redeemable units" Concentration Risk as at December 31, 2015 and 2014 The Schedule of Investment Portfolio presents the securities held by the Fund as at December 31, 2015 The following table presents the investment sectors held by the Fund as at December 31, 2014 and groups the securities by asset type, industry sector, geographic region, or currency eposure: As at December 31, 2014 Portfolio Breakdown % of Net Assets Canadian Equities Consumer Discretionary 09 Energy 92 Financials 228 Industrials 19 Materials 34 Telecommunication Services 38 Utilities 28 International Equities Australia 05 Bermuda 01 Brazil 01 China 03 Denmark 02 France 04 Germany 01 Hong Kong 01 Ireland 02 Japan 06 Meico 01 Netherlands 03 Peru 01 Spain 01 Sweden 02 Switzerland 06 United Kingdom 09 United States Equities Consumer Discretionary 18 Consumer Staples 06 Energy 03 Financials 11 Health Care 09 Industrials 08 Information Technology 18 Materials 01 Canadian Bonds Government of Canada & Guaranteed 45 Provincial Government & Guaranteed 57 Municipal Government & Guaranteed 18 Corporate 213 International Bonds Australia 01 Ireland 01 Luembourg 04 United Kingdom 01 United States 51 Supranational Bonds 02 Short-Term Investments 24 Derivative Assets (Liabilities) (02) Other Assets, less Liabilities 14 Total 1000 Credit Risk Credit ratings represent a consolidation of the ratings provided by various outside service providers and are subject to change, which could be material See the Schedule of Investment Portfolio for counterparty from over-the-counter derivative contracts, where applicable As at December 31, 2015 and 2014, the Fund invested in debt securities with the following credit ratings: % of Net Assets Debt Securities by Credit Rating December 31, 2015 December 31, 2014 'AAA' 'AA' 'A' 'BBB' Below 'BBB' Total Currency Risk The tables that follow indicate the currencies to which the Fund had significant eposure as at December 31, 2015 and 2014, based on the market value of the Fund's financial instruments (including cash and cash equivalents) and the underlying principal amounts of forward foreign currency contracts, as applicable As at December 31, 2015 Currency (note 2m) Total Currency Eposure* % of Net Assets USD 42, * Amounts reflect the carrying value of monetary and non-monetary items (including the notional amount of forward foreign currency contracts, if any) As at December 31, 2014 Currency (note 2m) Total Currency Eposure* % of Net Assets USD 46, * Amounts reflect the carrying value of monetary and non-monetary items (including the notional amount of forward foreign currency contracts, if any) The table that follows indicates how net assets as at December 31, 2015 and 2014 would have decreased or increased had the Canadian dollar strengthened or weakened by 1% in relation to all foreign currencies This analysis assumes that all other variables remain unchanged In practice, the actual results may differ from this analysis and the difference could be material December 31, 2015 December 31, 2014 Impact on Net Assets Interest Rate Risk The Fund s short-term assets and liabilities were not subject to significant amounts of risk due to fluctuations in the prevailing level of market interest rates The table that follows indicates the Fund s eposure to fied income securities by remaining term-to-maturity December 31, 2015 December 31, 2014 Remaining Term-to-Maturity Less than 1 year 20,534 17, years 108, , years 472, ,378 > 5 years 1,317,088 1,542,410 Total 1,918,669 2,320,739 The table that follows indicates how net assets as at December 31, 2015 and 2014 would have increased or decreased had the interest rate decreased or increased by 25 basis points and assuming a parallel shift in the yield curve This change is estimated using the weighted average duration of the fied income portfolio This analysis assumes that all other variables remain unchanged In practice, actual results may differ from this analysis and the difference could be material December 31, 2015 December 31, 2014 Impact on Net Assets 38,079 45,331 The accompanying notes are an integral part of these financial statements 15

16 Liquidity Risk Liquidity risk is the risk that the Fund will encounter difficulty in meeting obligations associated with financial liabilities The Fund is eposed to daily cash redemptions of redeemable units The Fund maintains sufficient cash on hand to fund anticipated redemptions With the eception of derivative contracts, where applicable, all of the Fund s financial liabilities are short-term liabilities maturing within 90 days after the period end For funds that hold derivative contracts with a term-to-maturity that eceeds 90 days from the period end, further information related to those contracts can be referenced in the derivative schedules following the Schedule of Investment Portfolio Other Price/Market Risk The table that follows indicates how net assets as at December 31, 2015 and 2014 would have increased or decreased had the value of the Fund s benchmark(s) increased or decreased by 1% This change is estimated based on the historical correlation between the return of Class A units of the Fund as compared to the return of the Fund s benchmark(s), using 36 monthly data points, as available, based on the monthly net returns of the Fund This analysis assumes that all other variables remain unchanged The historical correlation may not be representative of the future correlation and, accordingly, the impact on net assets could be materially different During the period, the Fund's primary benchmark changed from S&P/TSX Composite Inde to S&P/TSX Composite Dividend Inde In addition, the Fund's secondary benchmark changed from a blended benchmark comprised of a 50% weighting in the FTSE TMX Canada Universe Bond Inde and a 50% weighting in the S&P/TSX Composite Inde to a blended benchmark comprised of a 425% weighting in the FTSE TMX Canada Universe Bond Inde, a 40% weighting in the S&P/TSX Composite Dividend Inde, a 10% weighting in the MSCI World Inde (local currency), and a 75% weighting in the Merrill Lynch BB-B US Cash Pay High Yield Inde (100% weighting in the hedged) The current primary and blended benchmarks better reflect the Fund's strategic asset mi Impact on Net Assets Benchmark December 31, 2015 December 31, 2014 S&P/TSX Composite Dividend Inde 27,877 n/a FTSE TMX Canada Universe Bond Inde 16,471 12, % FTSE TMX Canada Universe Bond Inde 40,956 n/a 40% S&P/TSX Composite Dividend Inde 10% MSCI World Inde (local currency) 75% Merrill Lynch BB-B US Cash Pay High Yield Inde (100% hedged) S&P/TSX Composite Inde n/a 31,172 50% FTSE TMX Canada Universe Bond Inde n/a 58,274 50% S&P/TSX Composite Inde As at December 31, 2014 Level 1 (i) Level 2 (ii) Level 3 (iii) Total Classification Financial Assets Fied Income Securities 2,320,739 2,320,739 Short-Term Investments 144, ,400 Equities 3,369,753 1,650 3,371,403 Derivative assets 1,176,232 1,176,232 Total Financial Assets 3,369,753 3,643,021 7,012,774 Financial Liabilities Derivative liabilities (1,183,356) (1,183,356) Total Financial Liabilities (1,183,356) (1,183,356) Total Financial Assets and Liabilities 3,369,753 2,459,665 5,829,418 (i) Quoted prices in active markets for identical assets (ii) Significant other observable inputs (iii) Significant unobservable inputs Transfer of assets between Level 1 and Level 2 Financial assets and liabilities transferred from Level 1 to Level 2 are the result of securities no longer being traded in an active market December 31, 2015 December 31, 2014 Fair value of assets transferred from Level 1 to Level 2 during the period Financial assets and liabilities transferred from Level 2 to Level 1 are the result of securities now being traded in an active market December 31, 2015 December 31, 2014 Fair value of assets transferred from Level 2 to Level 1 during the period 453 9,825 Reconciliation of financial asset and liability movement Level 3 The Fund did not hold any significant positions of Level 3 investments at the beginning of, during, or at the end of either reporting period Fair Value Measurement of Financial Instruments The following is a summary of the inputs used as at December 31, 2015 and 2014 in valuing the Fund s financial assets and financial liabilities, carried at fair value: As at December 31, 2015 Level 1 (i) Level 2 (ii) Level 3 (iii) Total Classification Financial Assets Fied Income Securities 1,918,669 1,918,669 Short-Term Investments 57,740 57,740 Equities 2,568, ,568,867 Derivative assets 1,023,837 1,023,837 Total Financial Assets 2,568,456 3,000,657 5,569,113 Financial Liabilities Derivative liabilities (1,027,891) (1,027,891) Total Financial Liabilities (1,027,891) (1,027,891) Total Financial Assets and Liabilities 2,568,456 1,972,766 4,541,222 (i) Quoted prices in active markets for identical assets (ii) Significant other observable inputs (iii) Significant unobservable inputs 16 The accompanying notes are an integral part of these financial statements

17 Notes to Financial Statements As at and for the periods as disclosed in the financial statements (see note 1) 1 Organization of the Funds and Financial Reporting Periods Each of the CIBC Mutual Funds and CIBC Family of Managed Portfolios (individually, a Fund, and collectively, the Funds) is a mutual fund trust organized under the laws of Ontario and governed by a declaration of trust (Declaration of Trust) The address of the Funds registered office is 18 York Street, Suite 1300, Toronto, Ontario CIBC Securities Inc is the principal distributor, Canadian Imperial Bank of Commerce (CIBC) is the manager (the Manager), and CIBC Trust Corporation is the trustee (the Trustee) of the Funds Each Fund is permitted to have an unlimited number of classes of units and may issue an unlimited number of units of each class In the future, the offering of any classes of units of a Fund may be terminated or additional classes of units may be offered The following table indicates the classes of units offered for sale by each of the Funds, as at the date of these financial statements: Funds Class A Class T4 Class T6 Class T8 Premium Class Institutional Class Class O CIBC Canadian T-Bill Fund ü ü CIBC Money Market Fund ü ü ü CIBC US Dollar Money Market Fund ü ü ü CIBC Short-Term Income Fund ü ü ü CIBC Canadian Bond Fund ü ü ü ü ü CIBC Global Bond Fund ü ü CIBC Global Monthly Income Fund ü ü CIBC Balanced Fund ü CIBC Dividend Income Fund ü ü CIBC Dividend Growth Fund ü ü CIBC Canadian Equity Fund ü ü CIBC Canadian Equity Value Fund ü ü CIBC Canadian Small-Cap Fund ü CIBC US Equity Fund ü ü CIBC US Small Companies Fund ü ü CIBC Global Equity Fund ü CIBC International Equity Fund ü ü CIBC European Equity Fund ü ü CIBC Emerging Markets Fund ü ü CIBC Asia Pacific Fund ü ü CIBC Latin American Fund CIBC International Small Companies Fund CIBC Financial Companies Fund ü ü ü CIBC Canadian Resources Fund ü ü CIBC Energy Fund ü ü CIBC Canadian Real Estate Fund ü ü CIBC Precious Metals Fund ü ü CIBC Global Technology Fund ü CIBC Canadian Short-Term Bond Inde Fund ü ü ü ü CIBC Canadian Bond Inde Fund ü ü ü ü CIBC Global Bond Inde Fund ü ü ü CIBC Balanced Inde Fund ü ü ü CIBC Canadian Inde Fund ü ü ü ü CIBC US Broad Market Inde Fund ü ü ü ü CIBC US Inde Fund ü ü ü ü CIBC International Inde Fund ü ü ü ü CIBC European Inde Fund ü ü ü CIBC Emerging Markets Inde Fund ü ü ü ü CIBC Asia Pacific Inde Fund ü ü ü ü CIBC Nasdaq Inde Fund ü ü ü CIBC Managed Income Portfolio ü ü ü CIBC Managed Income Plus Portfolio ü ü ü CIBC Managed Balanced Portfolio ü ü ü ü CIBC Managed Monthly Income Balanced Portfolio ü ü ü CIBC Managed Balanced Growth Portfolio ü ü ü ü CIBC Managed Growth Portfolio ü ü ü ü CIBC Managed Aggressive Growth Portfolio ü ü ü ü CIBC US Dollar Managed Income Portfolio ü ü ü CIBC US Dollar Managed Balanced Portfolio ü ü ü ü CIBC US Dollar Managed Growth Portfolio ü ü ü ü 17

18 p / 2 Notes to Financial Statements Each class of units may charge a different management fee Operating epenses can be either common or class-specific Class-specific epenses are allocated on a class-by-class basis As a result, a separate net asset value per unit is calculated for each class of units Class A units are available to all investors on a no-load basis with a minimum investment of $500 Investors may have to pay a short-term trading fee if applicable Class T4, T6, and T8 units have the same characteristics as Class A units, ecept that they each intend to pay a fied distribution amount per unit, which also results in a separate net asset value per unit for each class, and may have different minimum investment requirements Premium Class units are available to investors on a no-load basis with a minimum investment of $100,000 for CIBC Canadian T-Bill Fund and CIBC Money Market Fund, US$100,000 for CIBC US Dollar Money Market Fund, $50,000 for CIBC Short-Term Income Fund, CIBC Canadian Bond Fund, CIBC Canadian Short-Term Bond Inde Fund, CIBC Canadian Bond Inde Fund, CIBC Global Bond Inde Fund, CIBC Balanced Inde Fund, CIBC Canadian Inde Fund, CIBC US Broad Market Inde Fund, CIBC US Inde Fund, CIBC International Inde Fund, CIBC European Inde Fund, CIBC Emerging Markets Inde Fund, CIBC Asia Pacific Inde Fund, and CIBC Nasdaq Inde Fund, and US$50,000 for the US dollar purchase option of CIBC US Broad Market Inde Fund and CIBC Nasdaq Inde Fund Management fees charged in respect of Premium Class units are lower than those charged in respect of Class A units Institutional Class units are available to investors with a minimum investment of $50,000 Institutional Class units are available to investors participating in programs that do not require the payment of sales charges by investors and do not require the payment of service or trailing commissions to dealers, and others who pay an annual fee to their dealer For these investors, we unbundle the typical distribution costs and charge a lower management fee Potential investors include institutional clients, clients of fee-for-service investment advisors, dealer sponsored wrap accounts, and others who pay an annual fee to their dealer instead of transactional sales charges and where the dealer does not receive service fees or trailing commissions from the Manager Class O units are only available to certain investors who have been approved by and have entered into a Class O unit account agreement with the Manager or whose dealer or discretionary manager offers separately managed accounts or similar programs and has entered into a Class O unit account agreement with the Manager These investors are typically financial services companies, including the Manager, that use Class O units of a fund to facilitate offering other products to investors No management fees or operating epenses are charged to a fund in respect of Class O units; instead, a negotiated management fee is charged by the Manager directly to, or as directed by, Class O unitholders or dealers and discretionary managers on behalf of unitholders The date upon which each Fund was established by Declaration of Trust (Date Established) and the date upon which each class of units of each Fund was first sold to the public (Inception Date) are reported in footnote Organization of the Fund on the Statements of Financial Position The Schedule of Investment Portfolio of each of the Funds is as at December 31, 2015 The Statements of Financial Position of each of the Funds are as at December 31, 2015 and 2014 The Statements of Comprehensive Income, Statements of Changes in Net Assets Attributable to Holders of Redeemable Units, and the Statements of Cash Flows of each of the Funds are for the years ended December 31, 2015 and 2014, ecept for Funds or classes established during either period, in which case the information presented is from the Date Established or the Inception Date to December 31, 2015 or 2014 These financial statements were approved for issuance by the Manager on March 2, Summary of Significant Accounting Policies These financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as published by the International Accounting Standards Board (IASB) The Funds adopted IFRS in 2014 as required by Canadian securities legislation and the Canadian Accounting Standards Board Previously, the Funds prepared their financial statements in accordance with Canadian generally accepted accounting principles (GAAP) as defined in Part V of the CPA Canada Handbook The financial statements have been prepared on a going concern basis using the historical cost convention However, each Fund is an investment entity and primarily all financial assets and financial liabilities are measured at fair value in accordance with IFRS Accordingly, the Funds accounting policies for measuring the fair value of investments and derivatives are consistent with those used in measuring the Net Asset Value for transactions with unitholders In applying IFRS, these financial statements include estimates and assumptions made by management that affect the reported amounts of assets, liabilities, income, and epenses during the reporting periods However, eisting circumstances and assumptions may change due to market changes or circumstances arising beyond the control of the Funds Such changes are reflected in the assumptions when they occur These financial statements have been presented in Canadian dollars, which is the Funds functional currency (unless otherwise noted) a) Financial Instruments Classification and recognition of financial instruments In accordance with IAS 39 Financial Instruments: Recognition and Measurement, financial assets and financial liabilities are classified at initial recognition into the following categories: Financial assets and liabilities at fair value through profit or loss ( FVTPL ) This category is sub-divided into: l l Financial instruments classified as Held For Trading: Financial assets and liabilities are classified as Held For Trading if they are acquired for the purpose of selling and/or repurchasing in the near term, and are acquired principally for the purpose of generating a profit from short-term fluctuations in price Derivatives and securities sold short held by the Funds are classified as Held For Trading and do not meet the definition of effective hedging instruments as defined by IAS 39 Financial instruments designated as FVTPL through inception: All investments held by the Funds, ecluding those classified as Held For Trading (discussed above), are designated as fair value through profit or loss upon initial recognition These financial assets are designated upon initial recognition on the basis that they are part of a group of financial assets that are managed and have their performance evaluated on a fair value basis, in accordance with risk management and investment strategies of the Funds, as set out in the Funds prospectus Loans and receivables The Funds include in this category receivable balances relating to portfolio investments and other short-term receivables such as receivable for units issued Other financial liabilities This category includes all financial liabilities, other than those classified as fair value through profit or loss The Funds include in this category amounts relating to payables for portfolio securities purchased and other accrued liabilities such as payable for units redeemed and distributions payable to holders of redeemable units All Funds have contractual obligations to distribute cash to the unitholders As a result, each Fund's obligation for net assets attributable to holders of redeemable units represents a financial liability and is presented at the redemption amount b) Risk management The Funds overall risk management approach includes formal guidelines that govern the etent of eposure to various types of risk, including diversification within asset classes and limits on the eposure to individual investments and counterparties In addition, derivative financial instruments may be used to manage certain risk eposures The Manager also has various internal controls to oversee the Funds investment activities, including monitoring compliance with the investment objectives and strategies, internal guidelines, and securities regulations Please refer to each Fund s Supplemental Schedule to Schedule of Investment Portfolio for specific risk disclosures Fair value of financial instruments by using valuation techniques Financial instruments are valued at their fair value which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date Refer to notes 3a to 3f for valuation of each specific type of financial instrument held by the Funds The fair value of financial assets and liabilities traded in active markets are based on quoted market prices at the close of trading on the reporting date The Funds use the last traded market price for both financial assets and financial liabilities where the last traded price falls within that day s bid-ask spread In circumstances where the last traded price is not within the bid-ask spread, the Manager determines the price that is most representative of fair value based on the specific facts and circumstances For financial assets and financial liabilities that are not traded in an active market, fair value is determined using valuation techniques The Funds classify fair value measurement within a hierarchy which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3) The three levels of the fair value hierarchy are: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date; 18

19 Notes to Financial Statements p / 3 Level 2: Level 3: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and Inputs are unobservable for the asset or liability If inputs are used to measure an asset s or liability s fair value, the classification within the hierarchy is based on the lowest level input that is significant to the fair value measurement Each Fund s fair value hierarchy classification of its assets and liabilities is included in the Supplemental Schedule to Schedule of Investment Portfolio The carrying values of all non-investment assets and liabilities approimate their fair values due to their short-term nature Fair values are classified as Level 1 when the related security or derivative is actively traded and a quoted price is available If an instrument classified as Level 1 subsequently ceases to be actively traded, it is transferred out of Level 1 In such cases, instruments are reclassified into Level 2, unless the measurement of its fair value requires the use of significant unobservable inputs, in which case it is classified as Level 3 The Manager is responsible for performing the fair value measurements included in the financial statements of a Fund, including the Level 3 measurements The Manager obtains pricing from third-party pricing vendors and the pricing is reviewed daily At each financial reporting date, the Manager reviews and approves all Level 3 fair value measurements The Funds also have a Valuation Committee which meets quarterly to perform detailed reviews of the valuations of investments held by the Funds which includes discussion on Level 3 measurements Credit risk Credit risk is the risk that a counterparty to a financial instrument, such as a fied income security or a derivative contract, will fail to discharge an obligation or commitment that it has entered into with the Funds The value of fied income securities and derivatives as presented on the Schedule of Investment Portfolio includes consideration of the creditworthiness of the issuer and, accordingly, represents the maimum credit risk eposure of the Funds Certain Funds may invest in short-term fied income securities issued or guaranteed primarily by the Government of Canada or any Canadian provincial government, obligations of Canadian chartered banks or trust companies, and commercial paper with approved credit ratings The risk of default on these short-term fied income securities is considered low and these securities primarily have credit ratings of A-1 (Low) or higher (as rated by Standard & Poor s, a division of McGraw Hill Financial, Inc, or equivalent rating from another rating service) The Funds may engage in securities lending transactions The credit risk related to securities lending transactions is limited by the fact that the value of cash or securities held as collateral by the Funds in connection with these transactions is at least 102% of the fair value of the securities loaned The collateral and loaned securities are marked to market on each business day Further information regarding the collateral and securities on loan can be found in the footnotes to the Statements of Financial Position and in note 2j Currency risk Currency risk is the risk that the value of an investment will fluctuate due to changes in foreign echange rates Mutual funds may invest in securities denominated or traded in currencies other than the Funds reporting currency Interest rate risk Prices of fied income securities generally increase when interest rates decline and decrease when interest rates rise This risk is known as interest rate risk Prices of longer-term fied income securities will generally fluctuate more in response to interest rate changes than would shorter-term securities Due to the nature of short-term fied income securities with a remaining term-to-maturity of less than one year, these investments are not generally eposed to a significant risk that their value will fluctuate in response to changes in the prevailing levels of market interest rates Liquidity risk The Funds are eposed to daily cash redemptions of redeemable units Generally, the Funds retain sufficient cash and cash equivalent positions to maintain adequate liquidity However, liquidity risk also involves the ability to sell an asset for cash easily and at a fair price Some securities are illiquid due to legal restrictions on their resale, the nature of the investment, or simply a lack of interested buyers for a particular security or security type Certain securities may become less liquid due to changes in market conditions, such as interest rate changes or market volatility, which could impair the ability of a Fund to sell such securities quickly or at a fair price Difficulty in selling securities could result in a loss or a lower return for a Fund Other price/market risk Other price/market risk is the risk that the value of investments will fluctuate as a result of changes in market conditions Several factors can influence market trends, such as economic developments, changes in interest rates, political changes, and catastrophic events All investments are eposed to other price/market risk c) Investment Transactions, Income Recognition, and Recognition of Realized and Unrealized Gains and Losses i) Interest for distribution purposes shown on the Statements of Comprehensive Income represents the coupon interest received by the Fund accounted for on an accrual basis The Funds do not amortize premiums paid or discounts received on the purchase of fied income securities ecept for zero coupon bonds, which are amortized on a straight-line basis ii) iii) iv) Dividend income is recorded on the e-dividend date Securities that are echange-traded are recorded at fair value established by the last traded market price when that price falls within that day s bid-ask spread Debt securities are recorded at fair value, established by the last traded price on the over-the-counter market (OTC) when that price falls within that day s bid-ask spread In circumstances where the last traded price is not within the bid-ask spread, the Manager determines the price that is most representative of fair value based on the specific facts and circumstances Unlisted securities are recorded at fair value using fair valuation techniques established by the Manager in establishing a fair value Realized gains and losses on investments and unrealized appreciation or depreciation of investments are calculated using the average cost, ecluding transaction costs, of the related investments v) Investment income is the sum of income paid to the fund that is generated from a fund s investment fund holdings vi) d) Offsetting Other income is the sum of income, ecluding transaction costs, other than that which is separately classified on the Statements of Comprehensive Income Financial assets and liabilities are offset and the net amount reported in the Statements of Financial Position, if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, or to realize the asset and settle the liability simultaneously Where applicable, additional information can be found in the table Offsetting Arrangements as part of the Supplemental Schedule to Schedule of Investment Portfolio This supplemental schedule discloses the OTC derivatives which are subject to offsetting e) Portfolio Securities The cost of securities of a Fund is determined in the following manner: securities are purchased and sold at a market-traded price to arrive at a value for the position traded The total purchased value represents the total cost of the security to the Fund When additional units of the same security are purchased, the cost of those additional units is added to the total security cost When units of the same security are sold, the proportionate cost of the units of the security sold is deducted from the total security cost If there is a return of capital paid by a security, the amount of this return of capital is deducted from the total security cost This method of tracking security cost is known as average cost and the current total for any one security is referred to as the adjusted cost base or ACB of the security Transaction costs incurred in portfolio transactions are ecluded from the average cost of investments and are recognized immediately in Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units and are presented as a separate epense item in the financial statements The difference between the fair value of securities and their average cost, ecluding transaction costs, represents the unrealized appreciation (depreciation) in value of the portfolio investments The applicable period change in unrealized appreciation (depreciation) of investments is included on the Statements of Comprehensive Income Short-term investments on the Schedule of Investment Portfolio are presented at their amortized cost which approimates the fair value Accrued interest for bonds is disclosed separately on the Statements of Financial Position f) Foreign Echange The value of investments and other assets and liabilities denominated in foreign currencies is translated into Canadian dollars, which is the Funds functional and presentation currency (ecept for CIBC US Dollar Money Market Fund, CIBC US Dollar Managed Income Portfolio, CIBC US Dollar Managed Balanced Portfolio, and CIBC US Dollar Managed Growth Portfolio, which are valued in US dollars) at the current rates prevailing on each valuation date 19

20 p / 4 Notes to Financial Statements Purchases and sales of investments, income, and epenses are translated into Canadian dollars, which is the Funds functional and presentation currency (with the eception of the above-mentioned Funds which are valued in US dollars) at the foreign echange rates prevailing on the dates of such transactions Foreign currency translation gains (losses) on investments and income transactions are included in Net realized gain (loss) on foreign currency and in Income, respectively, on the Statements of Comprehensive Income g) Forward Foreign Currency Contracts The Funds may enter into forward foreign currency contracts for either hedging or non-hedging purposes where such activity is consistent with their investment objectives and as permitted by the Canadian securities regulatory authorities Changes in the fair value of forward foreign currency contracts are included in derivative assets or derivative liabilities on the Statements of Financial Position, and are recorded as an Increase (decrease) in unrealized appreciation (depreciation) of investments and derivatives during the applicable period on the Statements of Comprehensive Income The gain or loss arising from the difference between the value of the original forward foreign currency contract and the value of such contract at close or delivery is realized and recorded as Net realized gain (loss) on foreign currency for Funds that use the forward foreign currency contracts for hedging, or as Derivative income (loss) from forward foreign currency contracts for Funds that do not use the forward foreign currency contracts for hedging h) Futures Contracts The margin deposits with brokers relating to futures contracts are included in Margin on the Statements of Financial Position Any change in the margin requirement is settled daily and included in Receivable for portfolio securities sold or Payable for portfolio securities purchased on the Statements of Financial Position Any difference between the settlement value at the close of business on each valuation date and the settlement value at the close of business on the previous valuation date is recorded as Derivative income (loss) from futures contracts on the Statements of Comprehensive Income i) Options Premiums paid for purchased call and put options are included in derivative assets and subsequently measured at fair value on the Statements of Financial Position When a purchased option epires, the Fund will realize a loss in the amount of the cost of the option For a closing transaction, the Fund will realize a gain or loss depending on whether the proceeds are greater or less than the premium paid at the time of purchase When a purchased call option is eercised, the cost of the security purchased is increased by the premium paid at the time of purchase Premiums received from writing options are included in derivative liabilities and subsequently measured at fair value on the Statements of Financial Position as initial reductions in the value of investments Premiums received from writing options that epire uneercised are recorded as realized gains and reported as Net gain (loss) on sale of investments and derivatives on the Statements of Comprehensive Income For a closing transaction, if the cost of closing the transaction eceeds the premium received, the Fund will record a realized loss or, if the premium received at the time the option was written is greater than the amount paid, the Fund will record a realized gain and are reported as Net gain (loss) on sale of investments and derivatives If a written put option is eercised, the cost for the security delivered is reduced by the premiums received at the time the option was written j) Securities Lending A Fund may lend portfolio securities in order to earn additional revenue, which is disclosed on the Statements of Comprehensive Income The loaned assets of any one Fund are not permitted to eceed 50% of the fair value of the assets of that Fund (ecluding collateral debt for the loaned securities) The minimum allowable collateral is 102% of the fair value of the loaned securities as per the requirements of National Instrument Investment Funds Collateral can consist of the following: i) Cash ii) iii) iv) Qualified securities; Irrevocable letters of credit issued by a Canadian financial institution that is not the counterparty, or an affiliate counterparty, of the fund in the transaction, if evidences of indebtedness of the Canadian financial institution that are rated as short-term debt by an approved credit rating organization have an approved credit rating Securities that are immediately convertible into securities of the same issuer, class, or type, and the same term, as the securities loaned The fair value of the loaned securities is determined on the close of any valuation date and any additional required collateral is delivered to the Fund on the net business day The securities on loan continue to be included on the Schedule of Investment Portfolio and are included in the total value on the Statements of Financial Position in Investments (non-derivative financial assets) at fair value Where applicable, a Fund s securities lending transactions are reported in footnote Securities Lending on the Statements of Financial Position k) Multi-Class Structured Funds The realized and unrealized capital gains or losses, income, and common epenses (other than class-specific operating epenses and management fees) of the Fund are allocated on each valuation date to the unitholders in proportion to the respective prior day s net asset value, which includes unitholder trades dated for that day, of each class of units at the date on which the allocation is made All class-specific operating epenses and management fees do not require allocation All class-specific operating epenses are paid by the Manager and are collected from the Funds on a recoverable basis l) Loans and Receivables, Other Assets and Liabilities Loans and Receivables, other assets and liabilities (other than those classified as FVTPL) are recorded at cost, which approimates their fair value, with the eception of net assets attributable to holders of redeemable units which are presented at the redemption value m) Legend of Abbreviations The following is a list of abbreviations (foreign currency translation and others) that may be used on the Schedule of Investment Portfolio: Currency Abbreviations AED United Arab Emirates Dirham JPY Japanese Yen ARS Argentine Peso KRW South Korean Won AUD Australian Dollar MAD Morocco Dirham BRL Brazilian Real MXN Meican Peso CAD Canadian Dollar MYR Malaysian Ringgit CHF Swiss Franc NOK Norwegian Krone CLP Chilean Peso NZD New Zealand Dollar CNY Chinese Renminbi PEN Peruvian Nuevo Sol COP Colombian Peso PHP Philippine Peso CZK Czech Koruna PKR Pakistan Rupee DKK Danish Krone PLN Polish Zloty EGP Egyptian Pound RUB Russian Ruble EUR Euro SEK Swedish Krona GBP British Pound SGD Singapore Dollar HKD Hong Kong Dollar THB Thai Baht HUF Hungarian Forint TRY New Turkish Lira 20

21 Notes to Financial Statements p / 5 IDR Indonesian Rupiah TWD Taiwan Dollar ILS Israeli Shekel USD United States Dollar INR Indian Rupee VEF Venezuelan Bolivar Fuerte JOD Jordanian Dinars ZAR South African Rand Other Abbreviations ADR CVO ETF GDR NVDR American Depositary Receipt Contingent Value Obligations Echange-Traded Fund Global Depositary Receipt Securities Non-Voting Depositary Receipt n) Standards issued but not yet effective Standards issued but not yet effective up to the date of issuance of the Funds financial statements are listed below The Funds intend to adopt applicable standards when they become effective IFRS 9, Financial Instruments - Classification and Measurement In July 2014, the IASB issued the final version of IFRS 9 Financial Instruments which reflects all phases of the financial instruments project and replaces IAS 39 Financial Instruments: Recognition and Measurement and all previous versions of IFRS 9 The standard introduces new requirements for classification and measurement, impairment, and hedge accounting IFRS 9 is effective for annual periods beginning on or after January 1, 2018, with early application permitted The Funds are in the process of assessing the impact of IFRS 9 o) Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units per Unit Increase (decrease) in net assets attributable to holders of redeemable units per unit of each class is calculated by dividing the Increase (decrease) in net assets attributable to holders of redeemable units (ecluding distributions), as reported on the Statements of Comprehensive Income, by the weighted average number of units in issue during the related period 3 Valuation of Investments The valuation date (Valuation Date) for a Fund is any day when the Manager s head office is open for business The Manager may, at its discretion, establish other Valuation Dates The value of the investments or assets of a Fund is determined as follows: a) Cash and Other Assets Cash, accounts receivable, dividends receivable, distributions receivable, and interest receivable are valued at fair value or at their recorded cost, plus or minus any foreign echange between recognition of the asset by the Fund and the current Valuation Date, which approimates fair value b) Bonds, Debentures, and Other Debt Obligations Bonds, debentures, and other debt obligations are fair valued using the last traded price provided by a recognized vendor upon the close of trading on a Valuation Date, whereby the last traded price falls within that day s bid-ask spread If the last traded price does not fall within that day s bid-ask spread, the Manager will then determine the price that is most representative of fair value based on the specific facts and circumstances c) Listed Securities, Unlisted Securities, and Fair Value Pricing of Foreign Securities Any security that is listed or traded on a securities echange is fair valued using the last traded price, whereby the last traded price falls within that day s bid-ask spread or, if there is no traded price on that echange or the last traded price does not fall within that day s bid-ask spread and in the case of securities traded on an OTC market, at the fair value as determined by the Manager as an appropriate basis for valuation In such situations, a fair value will be determined by the Manager to establish current value If any securities are inter-listed or traded on more than one echange or market, the Manager will use the principal echange or market for the fair value of such securities Units of each mutual fund in which a Fund invests will be valued at fair value using the most recent net asset value quoted by the Trustee or Manager of the mutual fund on the Valuation Date Unlisted securities are fair valued using the last traded price quoted by a recognized dealer, or the Manager may determine a price that more accurately reflects the fair value of these securities if the Manager feels the last traded price does not reflect fair value Fair value pricing is designed to avoid stale prices and to provide a more accurate fair value, and may assist in the deterrence of harmful short-term or ecessive trading in the Fund When securities listed or traded on markets or echanges that close prior to North or South American markets or echanges are valued by the Manager at their fair market value, instead of using quoted or published prices, the prices of such securities used to calculate the Fund s net assets or net asset value may differ from quoted or published prices of such securities d) Derivatives Long positions in options, debt-like securities, and listed warrants are fair valued using the last traded price as established on either their principal trading echange or by a recognized dealer in such securities, whereby the last traded price falls within that day s bid-ask spread and the credit rating of each counterparty (as rated by Standard & Poor s, a division of McGraw Hill Financial, Inc) meets or eceeds the minimum approved credit rating When any option is written by any Fund, the premium received by the Fund will be reflected as a liability that will be valued at an amount equal to the current fair value of the option that would have the effect of closing the position Any difference resulting from revaluation shall be treated as an unrealized gain or loss on investment; the liability shall be deducted in arriving at the net assets attributable to holders of redeemable units of the Fund The securities that are the subject of a written option, if any, will be valued in the manner described above for listed securities Futures contracts, forward contracts, or swaps will be valued at fair value of the gain or loss, if any, that would be realized on the Valuation Date if the position in the futures contracts, forward contracts, or swaps were to be closed out Margin paid or deposited in respect of futures contracts and forward contracts will be reflected as an account receivable and margin consisting of assets other than cash will be noted as held as collateral Other derivatives and margin are fair valued in a manner that the Manager determines to represent their fair value e) Restricted Securities Restricted securities purchased by any Fund will be fair valued in a manner that the Manager determines to represent their fair value f) Other Investments All other investments of the Funds will be fair valued in accordance with the laws of the Canadian securities regulatory authorities where applicable The value of any security or other property of a Fund for which a market quotation is not readily available or where the market quotations do not properly reflect the fair value of such securities will be determined by the Manager by valuing the securities at their fair value In such situations, fair value will be determined using fair valuation techniques that most accurately reflect their fair value as established by the Manager 4 Interest in Underlying Funds The Funds may invest in other investment funds (Underlying Funds) Each Underlying Fund invests in a portfolio of assets to generate returns in the form of investment income and capital appreciation for its unitholders Each Underlying Fund finances its operations primarily through the issuance of redeemable units, which are puttable at the unitholder s option and entitle the unitholder to a proportionate share of the Underlying Fund s net assets The funds interests in Underlying Funds held in the form of redeemable units, are reported in their Schedule of Investments at fair value, which represents the Funds maimum eposure on those investments The Funds' interests in Underlying Funds as at the prior year period ends are presented in the Financial Instruments Risks - Concentration Risk section in the Supplemental Schedule to Schedule 21

22 p / 6 Notes to Financial Statements of Investment Portfolio Distributions earned from Underlying Funds are included in Investment Income in the Statements of Comprehensive Income The total realized and change in unrealized gains (losses) arising from Underlying Funds are also included in the Statement of Comprehensive Income The Funds do not provide any additional significant financial or other support to Underlying Funds Where applicable, the table Interests in Underlying Funds is presented as part of the Supplemental Schedule to Schedule of Investment Portfolio provides additional information on the Funds investments in Underlying Funds where the ownership interest eceeds 20% of each Underlying Fund 5 Redeemable Units Issued and Outstanding Each Fund is permitted to have an unlimited number of classes of units and may issue an unlimited number of units of each class The outstanding units represent the net assets attributable to holders of redeemable units of a Fund Each unit has no par value and the value of each unit is the net asset value as determined on each valuation date Settlement of the cost for units issued is completed as per security regulations in place at the time of issue Distributions made by a Fund and reinvested by unitholders in additional units also constitute issued redeemable units of a Fund Units are redeemed at the net assets attributable to holders of a redeemable unit per unit of a Fund A right to redeem units of a Fund may be suspended with the approval of the Canadian securities regulatory authorities or when normal trading is suspended on a stock, options, or futures echange within Canada or outside of Canada on which securities or derivatives that make up more than 50% of the value or underlying eposure of the total assets of a Fund, not including any liabilities of a Fund, are traded and when those securities or derivatives are not traded on any other echange that represents a reasonably practical alternative for a Fund The Fund is not subject to any eternally imposed capital requirements The capital received by a Fund is utilized within the respective investment mandate of the Fund This includes the ability to make liquidity available to satisfy unitholder unit redemption requirements upon a unitholder s request Changes in issued and outstanding units for the years ended December 31, 2015 and 2014 can be found on the Statements of Changes in Net Assets Attributable to Holders of Redeemable Units 6 Management Fees and Operating Epenses Management fees are based on the net asset value of the Funds and are calculated daily Management fees are paid to the Manager in consideration for providing, or arranging for the provision of, management, distribution, and portfolio advisory services The maimum annual management fee epressed as a percentage of the average net asset value for each class of units of the Fund is reported in footnote Maimum Chargeable Annual Management Fee Rates on the Statements of Comprehensive Income For Class O units, management fees are negotiated with and paid by, or as directed by, unitholders, or dealers and discretionary managers on behalf of unitholders In addition to the management fees, the Funds are responsible for all epenses relating to the operation and conduct of the business of the Funds, including interest, operating, and administrative costs (other than advertising and promotional epenses, which are the responsibility of the Manager), brokerage fees, commissions, spreads, regulatory fees, Independent Review Committee fees, taes, audit and legal fees and epenses, safekeeping and custodial fees, investor servicing costs, and costs of unitholder reports, prospectuses, and other reports All class-specific operating epenses are paid by the Manager and recovered from the Funds The Funds do not pay a fee to the Trustee The Manager may recover from a Fund less than the actual class-specific operating epenses paid by the Manager, resulting in the Manager absorbing class-specific epenses The Manager may also charge to a Fund less than the maimum management fee in footnote Maimum Chargeable Annual Management Fee Rates on the Statements of Comprehensive Income, resulting in the Manager waiving management fees At its sole discretion, the Manager may stop absorbing class-specific operating epenses and/or waiving management fees at any time Class-specific operating epenses absorbed and/or management fees waived by the Manager are disclosed on the Statements of Comprehensive Income In some cases, the Manager may charge management fees to a Fund that are less than the management fees the Manager is entitled to charge in respect of certain investors in a Fund The difference in the amount of the management fees will be paid out by the Fund to the applicable investors as a distribution of additional units of the Fund (Management Fee Distributions) Management Fee Distributions are negotiable between the Manager and the investor and are dependent primarily on the size of the investor s investment in the Fund Management Fee Distributions paid to qualified investors do not adversely impact the Fund or any of the Fund s other investors The Manager may increase or decrease the amount of Management Fee Distributions to certain investors from time to time Certain Funds may invest in units of other Funds (the Underlying Funds) Where a Fund invests in units of an Underlying fund, the Fund does not pay duplicate management fees on the portion of its assets that it invests in units of the Underlying Fund In addition, the Fund will not pay duplicate sales fees or redemption fees with respect to the purchase or redemption by it of units of the Underlying Fund Some of the Underlying Funds held by the Funds may offer Management Fee Distributions Such Management Fee Distributions of an Underlying Fund will be paid out as required for taable distribution payments by a Fund The manager of an Underlying Fund may, in some cases, waive a portion of an Underlying Fund s management fee and/or absorb a portion of an Underlying Fund s operating epenses 7 Income Taes and Withholding Taes The Funds qualify as mutual fund trusts under the Income Ta Act (Canada) No income ta is payable by the Funds on net income and/or net realized capital gains that are distributed to unitholders In addition, income taes payable on undistributed net realized capital gains are refundable on a formula basis when units of the Funds are redeemed Sufficient net income and realized capital gains of the Funds have been, or will be, distributed to the unitholders such that no ta is payable by the Funds and, accordingly, no provision for income taes has been made in the financial statements Occasionally, a Fund may pay distributions in ecess of the net income and net realized capital gains of the Fund This ecess distribution is called a return of capital and is non-taable to the unitholder However, a return of capital reduces the average cost of the unitholder s units for ta purposes, which may result in a capital gain to the unitholder to the etent the average cost becomes less than zero CIBC US Dollar Money Market Fund, CIBC US Dollar Managed Income Portfolio, CIBC US Dollar Managed Balanced Portfolio, and CIBC US Dollar Managed Growth Portfolio may realize net foreign currency gains and losses on the translation of their net realized capital gains to Canadian dollars for ta purposes These gains will be distributed to investors annually unless these Funds elect to retain them, with the result that the ta would be payable by the Funds Non-capital losses that arose in 2006 and thereafter are available to be carried forward for 20 years Capital losses for income ta purposes may be carried forward indefinitely and applied against capital gains realized in future years Where applicable, a Fund s net capital and non-capital losses are reported in footnote Net Capital and Non-Capital Losses on the Statements of Changes in Net Assets Attributable to Holders of Redeemable Units The Funds have a taation year-end of December 15 (ecept for CIBC Canadian T-Bill Fund, CIBC Money Market Fund, CIBC US Dollar Money Market Fund which have a taation year-end of December 31) The Funds currently incur withholding taes imposed by certain countries on investment income and capital gains Such income and gains are recorded on a gross basis and the related withholding taes are shown as a separate epense in the Statements of Comprehensive Income 8 Brokerage Commissions and Fees The total commissions paid by the Funds to brokers in connection with portfolio transactions are reported in footnote Brokerage Commissions and Fees on the Statements of Comprehensive Income of each Fund where applicable In allocating brokerage business, consideration may be given by the portfolio sub-advisors of the Funds to dealers that furnish research, statistical analysis, and other securities to portfolio sub-advisors that process trades through such dealers (referred to in the industry as soft dollar arrangements) These goods and services are paid for with a portion of brokerage commissions and assist the portfolio sub-advisors with their investment decision-making services to the Funds The total soft dollar payments paid by the Funds to brokers are reported in footnote Brokerage Commissions and Fees on the Statements of Comprehensive Income of each Fund In addition, the Manager may enter into commission recapture arrangements with certain dealers with respect to the Fund Any commission recaptured will be paid to the applicable Fund Fied income and certain other securities are transacted in an OTC market, where participants are dealing as principals Such securities are generally traded on a net basis and do not normally involve brokerage commissions, but will typically include a spread (being the difference between the bid and the offer prices on the security of the applicable marketplace) Spreads associated with fied income securities trading and certain other securities are not ascertainable and, for that reason, are not included in the dollar amounts In addition, the soft dollar amounts only include the value of research and other services supplied by a third party to CIBC Asset Management Inc (CAMI or the Portfolio Advisor) and any portfolio sub-advisors, as the value of the services supplied to the Portfolio Advisor and any portfolio sub-advisors by the dealer is not ascertainable When these services benefit more than one Fund, the costs are allocated among the Funds based on transaction activity or some other fair basis as determined by the Portfolio Advisor and any portfolio sub-advisors 9 Related Party Transactions CIBC and its affiliates have the following roles and responsibilities with respect to the Funds and receive the fees described below in connection with their roles and responsibilities The Funds may hold securities of CIBC CIBC and its affiliates may also be involved in underwriting or lending to issuers of securities that may be held by the Funds, have purchased or sold securities from or to the Funds while acting as principal, have purchased or sold securities from or to the Funds on behalf of another investment fund managed by CIBC or an affiliate, and also may have been involved as a counterparty to derivative transactions Management fees payable and other accrued epenses on the Statements of Financial Position are amounts generally payable to a related party of the Fund 22

23 Notes to Financial Statements p / 7 Manager, Trustee, Portfolio Advisor, and certain Portfolio Sub-Advisors of the Funds CIBC is the Manager, CIBC Trust Corporation is the Trustee, and CAMI is the portfolio advisor of each of the Funds American Century Investment Management, Inc (ACI) is a portfolio sub-advisor to certain Funds Although not an affiliate, CIBC currently owns a 41% equity interest in ACI On December 21, 2015, CIBC announced that it entered into a definitive agreement to sell its minority position in ACI The sale is epected to be completed in the first half of 2016 and is subject to regulatory approval The Manager also arranges for fund administrative services (other than advertising and promotional, which are the responsibility of the Manager), legal, investor servicing, and costs of unitholder reports, prospectuses, and other reports The Manager is the registrar and transfer agent for the Funds and provides, or arranges for the provision of, all other administrative services required by the Funds The dollar amount (including all applicable taes) of all fund administrative epenses (net of absorptions) that the Manager recovers from a Fund is reported in footnote Administrative and Other Fund Operating Epenses on the Statements of Comprehensive Income Brokerage Arrangements and Soft Dollars The Portfolio Advisor generally delegates trading and eecution authority to the portfolio sub-advisors The Portfolio Advisor and portfolio sub-advisors make decisions, including the selection of markets and dealers and the negotiation of commissions, with respect to the purchase and sale of portfolio securities, certain derivative products (including futures), and the eecution of portfolio transactions Brokerage business may be allocated by the Portfolio Advisor or portfolio sub-advisors, including ACI, to CIBC World Markets Inc and CIBC World Markets Corp, each a subsidiary of CIBC The total commissions paid to related brokers in connection with portfolio transactions are reported in footnote Brokerage Commissions and Fees on the Statements of Comprehensive Income of each Fund CIBC World Markets Inc and CIBC World Markets Corp may also earn spreads on the sale of fied income and other securities, and certain derivative products (including forwards) to the Funds Dealers, including CIBC World Markets Inc and CIBC World Markets Corp, may furnish goods and services, other than order eecution, to the Portfolio Advisor and portfolio sub-advisors, including ACI, that process trades through them (referred to in the industry as soft dollar arrangements) These goods and services are paid for with a portion of brokerage commissions and assist the Portfolio Advisor and portfolio sub-advisors with their investment decision-making services to the Fund or relate directly to eecuting portfolio transactions on behalf of the Fund As per terms of the portfolio sub-advisory agreements, such soft dollar arrangements are in compliance with applicable laws Custodial fees directly related to portfolio transactions incurred by a Fund, otherwise payable by the Fund, shall be paid by CAMI, and/or dealer(s) directed by CAMI, up to the amount of the credits generated under soft dollar arrangements from trading on behalf of the Fund, or a portion of the Fund, during that month The total soft dollar payments paid by the Fund to related brokers are reported in footnote Brokerage Commissions and Fees on the Statements of Comprehensive Income of each Fund In addition, the Manager may enter into commission recapture arrangements with certain dealers with respect to the Funds Any commission recaptured will be paid to the relevant Fund Spreads associated with fied income, other securities, and certain derivative products (including forwards) are not ascertainable and, for that reason, are not included in the dollar values In addition, the soft dollar amounts only include the value of research and other services supplied by a third party to the Portfolio Advisor and portfolio sub-advisors, as the value of the services supplied to the Portfolio Advisor and portfolio sub-advisors by the dealer is not ascertainable When these services benefit more than one Fund, the costs are allocated among the Funds based on transaction activity or some other fair basis as determined by the Portfolio Advisor and portfolio sub-advisors Custodian The custodian holds all cash and securities for the Funds and ensures that those assets are kept separate from any other cash or securities that the custodian might be holding The custodian also provides other services to the Funds including record keeping and processing of foreign echange transactions CIBC Mellon Trust Company is the custodian of the Funds (the Custodian) The Custodian may hire sub-custodians for the Funds The fees and spreads for services of the Custodian directly related to the eecution of portfolio transactions by a Fund, or a portion of a Fund, are paid by CAMI and/or dealer(s) directed by CAMI up to the amount of the credits generated under soft dollar arrangements from trading on behalf of the Funds during that month All other fees for the services of the Custodian are paid by the Manager, and charged to the Funds on a recoverable basis CIBC owns a 50% interest in CIBC Mellon Trust Company Service Provider CIBC Mellon Global Securities Services Company (CIBC GSS) provides certain services to the Funds, including securities lending, fund accounting and reporting, and portfolio valuation Such servicing fees are paid by the Manager and charged to the Funds on a recoverable basis CIBC indirectly owns a 50% interest in CIBC GSS The dollar amount paid by the Funds (including all applicable taes) to CIBC Mellon Trust Company for custodial fees (net of absorptions) and to CIBC GSS for securities lending, fund accounting and reporting, and portfolio valuation (net of absorptions) for the years ended December 31, 2015 and 2014 is reported in footnote Service Provider on the Statements of Comprehensive Income 10 Hedging Certain foreign currency denominated positions have been hedged, or partially hedged, by forward foreign currency contracts as part of the investment strategies of certain Funds These hedges are indicated by a hedging reference number on the Schedule of Investment Portfolio and a corresponding hedging reference number on the Schedule of Derivative Assets and Liabilities - Forward Foreign Currency Contracts for those Funds 11 Collateral on Specified Derivatives Short-term investments may be used as collateral for futures contracts outstanding with brokers 23

24 Independent Auditors Report To the Unitholders of CIBC Canadian T-Bill Fund CIBC Money Market Fund CIBC US Dollar Money Market Fund CIBC Short-Term Income Fund CIBC Canadian Bond Fund CIBC Global Bond Fund CIBC Global Monthly Income Fund CIBC Balanced Fund CIBC Dividend Income Fund CIBC Dividend Growth Fund CIBC Canadian Equity Fund CIBC Canadian Equity Value Fund CIBC Canadian Small-Cap Fund CIBC US Equity Fund CIBC US Small Companies Fund CIBC Global Equity Fund CIBC International Equity Fund CIBC European Equity Fund CIBC Emerging Markets Fund CIBC Asia Pacific Fund CIBC Latin American Fund CIBC International Small Companies Fund CIBC Financial Companies Fund CIBC Canadian Resources Fund CIBC Energy Fund (collectively, the Funds ) CIBC Canadian Real Estate Fund CIBC Precious Metals Fund CIBC Global Technology Fund CIBC Canadian Short-Term Bond Inde Fund CIBC Canadian Bond Inde Fund CIBC Global Bond Inde Fund CIBC Balanced Inde Fund CIBC Canadian Inde Fund CIBC US Broad Market Inde Fund CIBC US Inde Fund CIBC International Inde Fund CIBC European Inde Fund CIBC Emerging Markets Inde Fund CIBC Asia Pacific Inde Fund CIBC Nasdaq Inde Fund CIBC Managed Income Portfolio CIBC Managed Income Plus Portfolio CIBC Managed Balanced Portfolio CIBC Managed Monthly Income Balanced Portfolio CIBC Managed Balanced Growth Portfolio CIBC Managed Growth Portfolio CIBC Managed Aggressive Growth Portfolio CIBC US Dollar Managed Income Portfolio CIBC US Dollar Managed Balanced Portfolio CIBC US Dollar Managed Growth Portfolio We have audited the accompanying financial statements of the Funds, which comprise the statements of financial position as at December 31, 2015 and 2014, and the statements of comprehensive income, changes in net assets attributable to holders of redeemable units and cash flows for the years then ended, and a summary of significant accounting policies and other eplanatory information Management's responsibility for the financial statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error Auditors responsibility Our responsibility is to epress an opinion on these financial statements based on our audits We conducted our audits in accordance with Canadian generally accepted auditing standards Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error In making those risk assessments, the auditors consider internal control relevant to the Funds' preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of epressing an opinion on the effectiveness of the Funds' internal control An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements We believe that the audit evidence we have obtained in our audits is sufficient and appropriate to provide a basis for our audit opinion Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as at December 31, 2015 and 2014, and their financial performance and their cash flows for the years then ended in accordance with International Financial Reporting Standards Toronto, Canada March 11,

25 CIBC Mutual Funds CIBC Family of Managed Portfolios CIBC 18 York Street, Suite 1300 Toronto, Ontario M5J 2T8 CIBC Securities Inc Website wwwcibccom/mutualfunds CIBC Securities Inc is a wholly-owned subsidiary of CIBC and is the principal distributor of the CIBC Mutual Funds and the CIBC Family of Managed Portfolios CIBC Family of Managed Portfolios are mutual funds that primarily invest in other CIBC Mutual Funds To obtain a copy of the simplified prospectus, call CIBC Securities Inc at or ask your advisor